Interest Rate maintained by Bank of Canada
This week, the Bank of Canada decided to maintain the overnight interest rate to 1 3/4 percent. The heaviest weight on the global economy is the US-China trade conflict that has escalated recently.
Why is this important when looking for a car loan? Interest rates will sway a lot of people from borrowing to buy a car. Keep low rates keep your payments down.
What about my Line of Credit to finance a car?
Line of credits are a great tool for purchasing many different items, typically at a lower interest rate than a credit card. While interest rates remain low, it is a very attractive option to most people - but its down the road in which people should consider. At some point, probably sooner than you expect - rate are going to go up. Most LoC fluctuate with Canada's prime interest rate. Basically, when the rate goes up, your payment and cost of borrowing inflates. When using a car loan, the rate is fixed and the payment and cost of borrowing does not fluctuate with prime.
First and foremost, our approval process always gets you the best rate that you qualify for at a fixed interest rate. Please Apply HERE - before rates start to climb!