The Bank of Canada held its key lending rate at 1% for the 12th consecutive time since September 2010. Economists are predicting that interest rates will remain at historically low levels until well into 2013. Cheap borrowing costs – especially for mortgages – have led to record high consumer debt levels.
Bank of Canada governor Mark Carney has repeatedly urged Canadians not to borrow beyond their needs, as interest rates will eventually rise again. Meanwhile, Bank of Montreal dropped their mortgage rates to 2.99% on 5-year fixed mortgages, and 3.99% on 10-year fixed mortgages. Something tells me that Canadians won’t be curbing their enthusiasm for borrowing any time soon.
On Moneyville this week, I wrote about market-linked GICs. I also explained why I’m using a tax accountant this year.
Here’s a look at some interesting personal finance articles from this week around the blogosphere:
- Mainstream Mom shares loads of kitchen saving tips and tricks
- Canadian Finance Blog asks should you bother with a safety deposit box?
- Modest Money explains the mistake of buying an expensive car
- Financial Highway asks do you know what it takes to be a landlord?
- Young and Thrifty reviews Findependence Day and is giving away a copy
- Big Cajun Man explains the tyranny of choice
- Credit Cards Canada lists 7 tips for success when calling customer service
- Million Dollar Journey gives a primer on delisted stocks
- The Blunt Bean Counter asks is personal income tax planning a fallacy?
- Retire Happy Blog explains the differences between CPP and OAS
Have a great weekend everyone!