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Rising interest rates in Canada: What it means for borrowers and savers

Coastal Community is passionate about helping Islanders improve their financial health and protect what’s important
Whether you're in need of a loan or looking to save, Coastal Community Credit Union can assist you. Photo via Coastal Community Credit Union

The rapid jump in interest rates is attracting a great deal of attention in the headlines. These higher rates come with challenges and opportunities, and understanding what rate changes potentially mean for you will help diffuse any stress or anxiety. 

Whether you’re borrowing or saving, Coastal Community Credit Union (CCCU) is here to help you find the solution right for your situation. 

Knowledge is power for financial borrowers

For those with variable-rate mortgages, the rising interest rates are more nuanced than only seeing a direct hike in monthly payments. As rates increase, your monthly payment will generally stay the same, but the split between how much is allocated to the principal versus the interest changes. You’ll be paying down your principal more slowly until rates climb past a certain "trigger" point. At this point, your monthly payment may adjust to accommodate the increased rates. This approach provides some payment stability, but the specifics vary based on your mortgage agreement.

Those contemplating a new mortgage or a refinance might find now to be a good time to consider locking in a fixed rate. Current homeowners can evaluate their mortgage terms and discuss potential options with a CCCU advisor to ensure they have clarity and confidence regarding the best path forward, based on their situation.

The silver lining for financial savers

Rising interest rates are not all doom and gloom for those saving. In fact, this is good news for those invested in Guaranteed Investment Certificates (GICs) or term deposits. Higher interest rates can translate into better returns on savings, making it a favourable time to reconsider and restructure your savings strategy.

Savers within the CCCU community can expect guidance from CCCU advisors that's not just based on global economic indicators, but based on the nuances of Vancouver Island and the Gulf Islands' economic landscape. Those who invest with CCCU can feel at ease knowing that their savings are 100% protected by the Credit Union Deposit Insurance Corporation of British Columbia.

Navigating interest rates with Coastal Community Credit Union is different

In times of financial flux, it's comforting to remember that CCCU is in the business of helping its members do great things. As the largest financial institution based on Vancouver Island and the Gulf Islands with over 30 locations, CCCU is committed to the financial health of its 120,000 members and clients by helping them balance the financial needs of today with those of tomorrow, manage their spending, saving and debt, and ensure they have a plan to reach short- and long-term goals.

Whether you're looking to better understand your mortgage options or maximize your savings potential, CCCU is ready to help you turn financial challenges into opportunities for growth. 

Coastal Community Credit Union is available by phone on weekdays from 8 a.m. to 7 p.m. To learn more, visit