Saving at the gas pump can affect your mortgage

The Bank of Canada announced last week that it’s cutting its key overnight lending rate by a quarter of a percentage point because of plunging oil prices.
A combination of high supply and low demand—particularly outside of the US—has caused the low oil prices. While lower gas prices mean less money out of our pocket at the gas pump, lower oil prices affects the Canadian economy.
Bank of Canada Deputy Governor Timothy Lane said recently that “lower oil prices are likely, on the whole, to be bad for Canada.” He also stated that “the shock of a loss in oil revenue will be offset by gains in other sectors such as manufacturing but this will take some time”. Canada could also benefit from continued growth of the U.S. economy.
With world markets in a slight downturn and interest rates at a record low, now might be the ideal time to consider borrowing to invest or to take advantage of some unused RRSP limits. January is when many Canadians analyze their debts and find ways to reduce their overall interest payments or increase their monthly cash flow for the year ahead. We can help with both.
Using your mortgage to pay off high interest debts just makes sense. Contact us today and let us help you get your new year off on the right track.