Could You Afford An Interest Rate Hike?

With the Bank of Canada holding interest rates steady at 0.5 per cent, Canadians are on a credit spending binge despite a continued slump in the national economy. In fact, a new poll conducted by Ipsos on behalf of MNP Ltd. shows that nearly 30 per cent of respondents admit they have taken on more debt due to the rock bottom prices in interest rates. While credit can be an incredible tool, the big question is how Canadian households would be impacted if interest rates started to rise?

MNP Ltd.’s President, Grant Bazian warns that an increase in interest rates, could push more than 30 per cent of respondents to the survey towards financial ruin. To combat this, Bazian advises “Consumers must start paying down debt now while interest rates are low. It will get more expensive – and for some it will be unaffordable – when interest rates rise.”

An original article discussing the Ispos survey conducted on behalf of MNP regarding Canadian consumer debt were posted online with Global News on April 11, 2017.