'Things just keep getting more expensive': B.C. residents brace for another interest rate hike
With the Bank of Canada increasing its overnight lending rate 25 basis points, some Vancouver residents voiced their concerns regarding housing affordability.
"A down payment's one obstacle, but higher interest rates are just going to be another obstacle," Marc Pitcher, a Vancouver resident currently hunting for a home.
"I mean we're already the most expensive place to live," Rony Habooshesh, a fellow Vancouver resident. "Who can live in Vancouver anymore?"
The Bank of Canada made the move citing 'stubbornly high' inflation levels. The increase is the first hike since January as rates have hit the highest point since 2001.
"I do think it's important for us to all bear in mind the destination," said federal Finance Minister Chrystia Freeland.
"The destination is stable, low inflation and steady, strong growth."
The feds are also citing a national housing market that's recently picked up steam. B.C., Canada's priciest housing market, also bounced back leading the way in the national trend.
"Household debt in B.C. is a lot higher than other provinces, a lot of that is because home prices are higher and people have to take on higher mortgages," said Brendon Ogmundson, chief economist with the BC Real Estate Association.
"So we are somewhat more interest rate sensitive in B.C. compared to other provinces, so when the rates go up we should expect that our economy is going to feel it a bit more."
Ogmundson cautions that the impacts of the rate increases will be more noticeable in the next few years when homeowners on fixed-term mortgages will be forced to renew with the higher rate.
Meanwhile, the increase is good news for some.
"I'm thrilled, absolutely," said retiree Eric Wickham, who worked as a commercial fisherman. "I'm 80 years old and retired and have to live off my interest income and it's been terrible over the past few years, it's been starvation."
The next update from the Bank of Canada on if we could see another rate hike is slated for July 12.
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.