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The Impact of Interest Rates, your Investments, your Mortgage

It’s no secret to anyone that the Bank of Canada might raise its key interest rate once again this year. While the impact of said rate increases on borrowing costs generates considerable talk, they also affect your investments and their returns. 


Key interest rate fluctuations are among the elements that affect interest rates set by financial institutions. These rates usually keep pace with said fluctuations, thereby impacting borrowing costs at the individual and corporate level. Moreover, those fluctuations also affect your investments, with each type of investment reacting differently.



Since early 2018, key interest rate increases have had a clear impact on bonds. Their prices are decreasing. This is basically the effects of supply and demand, as investors consider new bonds issued at a higher nominal rate more attractive than those already on the market. As a result, the latter’s value goes down to reflect this new reality. 
Your bonds’ maturity also influences their sensitivity to interest rate fluctuations, with long-term bonds being particularly vulnerable. 


While interest rate fluctuations don’t have such a direct impact on equities, higher borrowing costs impede indebted companies, as their repayment costs go up as well. As a result, their profits take a hit.
Moreover, when interest rates are raised, dividend-paying equities become less attractive, as it may become just as profitable and less risky to choose bonds, instead.


Interest rate fluctuations also affect our currency’s value. Influencing factors include increased foreign interest in Canadian government bonds when interest rates go up. By purchasing such bonds with Canadian dollars, these foreign buyers put pressure on the currency’s demand, thereby increasing its value. Meanwhile, Canadian investors holding foreign investments see their value drop as a result of a stronger Canadian dollar.


One cannot talk about higher interest rates without also bringing up mortgage rates. In fact, if you’re about to negotiate a mortgage, this is probably one of your top concerns when rates go up, as borrowing could get more expensive. 

This being said, a sound strategy and professional assistance could help you save money. 


Whether you’re buying your first house or a new property, or refinancing or renewing your mortgage, once you’ve made the decision to borrow, it’s important to obtain advice from experienced, impartial professionals, such as mortgage brokers. They can give you some advice on such matters as the choice of a fixed or variable rate, term and amortization, loan conditions, and mortgage renewal or transfer, taking your specific situation into account.

It may also be wise to obtain advice on how to save for a down payment, develop a strategy to manage debt effectively or address financial planning in general – information you can get from Advisors and Mutual Fund Representatives or Financial Planners. 


Today, when every minute of your busy schedule counts, it’s important that obtaining or renewing a mortgage loan be a simple process. 

If it seems cumbersome to you, keep in mind that a mortgage broker can streamline the process by finding the best rates, submitting negotiated offers to you and transferring the file to the lender of your choice. You’ll avoid headaches and save time, which you can then spend on your many other activities.  

Speed and efficiency 

Speed can be crucial in a strong real estate market. You don’t want to miss out on the house of your dreams because of a slow borrowing process. 

Establishing contact quickly and using leading-edge technologies to process your application efficiently can help you avoid disappointment. The access to multiple recognized lenders can also make the difference. If you have the big picture, the risks of missing out on an opportunity go down. The appropriate professional can help you with this matter.

FERIQUE Mortgage Referral Program

That said, FERIQUE Fund Management’s principal distributor, FERIQUE Investment Services, joined forces with mortgage firm CanWise to offer you highly competitive rates and also simplify your life. The result of this partnership is the FERIQUE Mortgage Referral Program. 

Until June 29, FERIQUE will give you the equivalent of up to 0.3% of your loan.*


Get more information on our website or by watching this webinar (in French only).

Advisory ServicesFERIQUE Investment Services
Monday to Friday 8 a.m. to 8 p.m.
T 514-788-6485
Toll free 1-800-291-0337
[email protected]

*To take advantage of the program, you need to first contact FERIQUE Investment Services and meet our general eligibility conditions.

Financing may be provided:

   - within the Province of Quebec only
   - for a purchase, renewal or refinancing of a principal/secondary residence or a rental property with one to six units

The totality of the commission received by FERIQUE Investment Services from CanWise is reimbursed to you within 90 days from the date of disbursement.
The amount is calculated at the following rates: 

   - 1- to 2-year mortgage: 15 base points (bp, or 0,15%)
   - 3- to 4-year mortgage: 20 bp (0,2%)
   - 5-year mortgage or longer: 30 bp (0,3%)

The introductory offer is in effect until July 31, 2018 inclusive. This remittance must be invested in a Fund held by you in a new or existing account with FERIQUE Investment Services. FERIQUE Investment Services reserves the right to end this introductory offer at any time without notice.  

FÉRIQUE is a registered trademark of Gestion FÉRIQUE and is used under license by its subsidiary, Services d'investissement FÉRIQUE. Gestion FÉRIQUE is an Investment Fund Manager and assumes management duties in relation to the FÉRIQUE Funds. Services d'investissement FÉRIQUE is a Mutual Fund Dealer and a Financial Planning Firm, as well as the Principal distributor of the FÉRIQUE Funds. Please note that for commercial purposes, Services d'investissement FÉRIQUE is also known in English as FÉRIQUE Investment Services.

There may be brokerage fees, trailing commissions, management fees and expenses associated with investment in the Funds. Management expense ratios vary from one year to another. Please read the prospectus before investing. Mutual funds are not guaranteed, their values fluctuate frequently and past performance may not be repeated.