Borrowers beware as Bank of Canada may raise rates sooner than you think
 
Near the start of the pandemic the Bank of Canada lowered interest rates to near bottom levels signalling to Canadians they will remain low for a long time. Now with Canada's economy recovering faster than expected, the Bank of Canada is shifting their tone on rates, saying they may rise by the second half of 2022. CTV's Chief Financial Commentator Pattie Lovett-Reid explains why borrowers in a variable rate mortgage might want to make the switch to a fixed one.
 
Goodbye big city life, hello suburbs
 
Nearly half of first-time homebuyers in Canada are looking further afield into the suburbs for a prime piece of real estate. A survey by the Bank of Montreal found that 47 per cent of respondents are ditching downtown for more affordability and larger spaces, and it’s a trend that’s expected to continue in a work-from-home world. Only 30 per cent of those surveyed are still attracted to urban hubs such as Montreal, Vancouver and Toronto.
 
Why the rising deficit puts your retirement savings at risk
 
Retail investors were not negatively targeted in the federal government's budget announcement, but still remain vulnerable to rising debt levels caused by the pandemic and future infrastructure spending plans. Personal Finance Columnist Dale Jackson details how marginal tax rates, TFSA contributions and capital gains taxes all may be impacted as the government looks for new ways to tackle their debt.

Federal government piles on the taxes in latest budget

The federal government released its first budget in more than two years earlier this week and it unveiled a series of new tax changes. The changes include an increased tax on luxury vehicles, vaping products and for companies who offer digital services to Canadians. In addition to added taxes, the government will also be closing some loopholes to prevent tax evasion. This plan is set to bring in $10 billion in new revenue to help pay for Canada's mounting deficit and new infrastructure projects.

Staying the course in homeownership

Home prices in hot Canadians markets rose to record-breaking heights amid low interest rates, though the pumped-up values aren’t motivating homeowners to sell their property any time soon. A survey from the Canadian Imperial Bank of Commerce found that 67 per cent of respondents had no plans to sell their home. In fact, many respondents plan to improve the home they currently live in.

5 ways to protect yourself against higher interest rates

It's inevitable interest rates will rise, whether that is next year or later is unsure, but Canadians should prepare themselves for when the time comes. CTV's Chief Financial Commentator Pattie Lovett-Reid lists five things Canadians should focus on to make sure they're ready. She suggests locking in loans at a fixed rate or rebalancing your portfolio to adjust for the risk. If you are also thinking of making a large purchase, consider if you can afford it in a higher rate environment before signing off.