The US Consumer price index in September 2022 rose 0.4% and were up 8.2% from a year ago. Core inflation rate also went up, higher than the market expected.
Why do you and I care about these numbers?
The US Fed has announced multiple interest rate hikes in a short span of time. The reason behind their decision is to tamper inflation.
Inflation is measured by how fast the prices are going up, especially on what families are using daily. This is the Consumer Price Index.
It’s going up higher than expected, so the US government will likely announce another hike increase by 0.75 percentage point in November, instead of slowing down.
Canadian government will likely follow.
What does that mean to you and I as real estate investors and hardworking Canadians?
If you have variable mortgages, depending on the terms of your mortgages, your monthly payment may go up further.
If you have the type of variable mortgages like mine, the monthly payment stays the same, but my amortization period will get stretched even further. One of my mortgage’s amortization periods got stretched out from 17 years to 24 years. And the other one from 25 years to 54 years.
Thankfully, we have Dalia Barsoum from Streetwise Mortgage providing 5 specific ways to ease your cash flow pressure because of the interest rate hikes with details.
For those of you who want to get more help, feel free to schedule a consultation with Dalia’s team by emailing them at [email protected] and see if there’re ways to minimize your cash outflow.
Lastly, our team has been working tirelessly to prepare for the upcoming Wealth Hacker Conference on preparing everyone for the upcoming recession. We have experts such as Dalia sharing her insights on how to protect your portfolio and grow from this recession. If you are lost, join us at the upcoming Wealth Hacker Conference.
Visit WealthHacker.ca now to get your tickets.
Until next time, happy Canadian Real Estate Investing.
Cherry Chan, CPA, CA
Your Real Estate Accountant