The Canadian financial landscape is shifting once again. The Bank of Canada’s overnight interest rate decisions influence everything from mortgage costs to savings returns, and Canadians are rethinking how to make the most of their money.
At Moya Financial Credit Union, we believe that understanding these changes — and knowing how to adapt — is the key to building financial stability and long-term wealth.
01. Understanding the Current Rate Environment
The Bank of Canada adjusts interest rates to help control inflation, stimulate growth, or cool an overheated economy. When rates rise:
- Borrowing becomes more expensive for mortgages, loans, and lines of credit.
- Savings and term deposits can offer higher returns.
- Certain investments, like bonds and GICs, may become more attractive.
When rates fall:
- Borrowing costs decrease, which can stimulate economic activity.
- Returns on traditional savings products may decline, encouraging investors to seek growth in other areas like equities or mutual funds.
02. Where the Canadian Economy Stands
Canada is currently navigating:
- Slowing inflation compared to last year’s highs.
- Housing market adjustments as buyers and sellers adapt to rate changes.
- Ongoing global uncertainty affecting trade, supply chains, and investment markets.
For investors, this means balancing caution with opportunity. While volatility can be unnerving, it also creates openings for well-planned investments.
03. Smarter Ways to Invest Right Now
With interest rates and markets in flux, consider these strategies:
a) Diversify Your Portfolio
Don’t put all your eggs in one basket. Balancing between equities, fixed income, and alternative investments can help protect against market swings.
b) Take Advantage of Higher Guaranteed Rates
If BoC rate changes have pushed up deposit rates, GICs and high-interest savings accounts can be a low-risk way to lock in better returns.
c) Review Fixed vs. Variable Debt
If you have loans or a mortgage, evaluate whether locking in a fixed rate could offer stability — or if a variable rate might be beneficial if rates are expected to fall.
d) Stay Invested in the Long Term
Short-term market moves can be unpredictable. A disciplined, long-term approach often outperforms frequent changes based on market noise.
04. Why Work with Moya Financial?
As a member-focused credit union, we put your best interests first — not shareholder profits. Our financial advisors can:
- Review your current investment mix.
- Identify opportunities based on today’s interest rate environment.
- Provide strategies tailored to your financial goals and risk tolerance.
Final Thoughts
Economic changes are inevitable — but with the right knowledge and a trusted partner, you can make them work in your favour. Whether you’re looking to grow your wealth, protect your savings, or prepare for future opportunities, now is the time to review and refresh your financial plan.
📅 Let’s talk about your investment strategy. Book a conversation with a Moya Financial advisor today.
Your money. Your future. Your Moya.
