The Bank of Canada raised its trendsetting interest rate again this week. It's up a quarter point to 1.5 per cent, the fourth such increase in the last year.
That is expected to boost the cost of buying a home as the banks and other financial institutions raise their mortage rates.
"The big five (banks) already did their interest rate adjustment ahead of the Bank of Canada; obviously we are going to be increasing as well," noted Chris Sadler, Branch Manager for ATB Financial in Drumheller. "If you have a (mortgage) renewal or you're thinking of buying, come in and get a pre-approval lock-in before the rate changes so that you can enjoy a lower rate; and if interest rates continue to adjust, you're still okay."
Realtors say it's a real buyers market in Drumheller right now, which is more reason according to Sadler to get a mortgage pre-approved before rates rise again.
"Any time the Bank of Canada raises Prime Interest Rate it does have a bigger effect on loans, lines of credit and everything," he told Drum FM. "That being said, I don't think you're going to see an immediate increase on the non-real estate secured products, not right away anyway. I think that's going to remain relatively the same to be competitive with everyone else."
The other side of higher interest rates is bigger returns on savings. However, Sadler cautions you still have to manage your investments.
"Higher interest rates do help with those fixed term products," he allowed. "As you know, (as) interest rates go up bonds tend to do the opposite, so higher interest rates do mean that the fixed products will come up, but they're not going to come up as quickly as you would like to see."