With the Bank of Canada set to raise lending rates, mortgage holders have been warned to expect more expensive debt than they’ve become used to. But other forms of debt are even more vulnerable to the tiny rate hikes to come.
Traders are about 90 per cent certain of a rate hike at 10 a.m. ET Wednesday, with the bank’s benchmark rate expected to inch up to 0.75 per cent from 0.50 per cent. And a major impact of that move is likely to be felt entirely outside the mortgage market.
In recent years, home equity lines of credit — or HELOCS — have become popular among homeowners eager to turn their eye-popping house price gains into usable cash.
Read full story here: Mortgages Won’t Be Only Problem For Many Canadians As Rates Rise – Business – CBC News
