The effects of COVID-19 have had a negative impact on daily life, and that includes our finances.
While there is some good news for spenders, Canadian financial expert Preet Banerjee says, it is bad news for others.
As a result of the outbreak, people are being encouraged to spend more money, as interest rates have dropped, he said. This comes after the Bank of Canada cut half a percentage point from its standard interest rate on March 4 in an effort to shore up the economy.
“They want to stimulate the economy just to combat that.”
What does this mean for mortgages?
Whether the lowered interest rates will have an effect on you depends on the type of mortgage you have, Banerjee said.
With a fixed-rate mortgage, he said, the interest rate will not change because it was set for the duration of the term. This means you won’t be paying any more or less.
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