The Low Interest Credit Hunt– Your House is Likely the Fastest Way There
2015 was not the year for many big businesses. Sinking prices for oil and other commodities took a big bite out of national income, business investment and domestic demand – and gross domestic product rose just 1.2 % in the year. Last year’s economic growth was pretty dismal – some even suggesting 2015 experienced a slight recession – and that usually doesn’t mean anything good. However, when it comes to your own hunt for low interest credit rates, it actually works in your favour.
According to the Globe and Mail, Canada’s growth was the lowest since 2009: “Canada’s oil-battered economy in 2015 grew at less than half the pace of 2014, Statistics Canada reported, as a return to sluggish growth in the fourth quarter punctuated a disappointing year.”
You can read more about how we entered 2016 here: http://www.theglobeandmail.com/report-on-business/economy/growth/canadian-economy-grows-at-better-than-expected-pace-in-fourth-quarter/article28962744/.
So, we mentioned favourable results for you, but what does this have to do with your low interest credit hunt? These events triggered another: the Bank of Canada dropped interest rates to historic lows, and Canadians began using record low interest rates to finance.
Right now, Canada’s lending rate is sitting at .5% – but this is an historic low that won’t last forever. If you are looking for low interest credit, these rates present the best opportunity to deal with things you want to finance.
The lowest interest credit you will likely encounter will be through a mortgage. If you own your home, it makes sense to use equity to finance things like debt while rates are so low. These low interest rates can save a ton in the long run.
In an effort to temper hot markets which some claim are inflated, this low interest rate was also accompanied by new CMHC mortgage rules, such as reducing the amounts of mortgages you can insure, reducing allowable repayment amortizations and most recently requiring larger down payments on purchases of more than $500,000. See here for more on these rules: http://www.cbc.ca/news/business/new-mortgage-rules-down-payment-1.3440797.
If you are looking to finance, whether as a means of debt consolidation or to take on some much needed/wanted projects, now is the time to take advantage of great low rates before they go up or the government institutes more rules that make it harder to borrow.
DebtCare has the financial options that let you take advantage and clear up your finances.
Call us today for a consultation: 1 (888) 890-0888.