We’ve had 12 months of rising interest rates – how are you holding up?

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The biggest question in economics right now is whether inflation has calmed down enough for us to stop worrying about more interest rate increases.

The Bank of Canada has a chance to adjust its trendsetting overnight rate on Wednesday. The consensus is that the bank will hold steady while it monitors inflation and the economy. The remaining rate-setting dates in 2023 are April 12, June 7, July 12, Sept. 6, Oct. 25 and Dec. 6. If you have a variable-rate mortgage, line of credit or floating rate loan, these are dates to note.

With inflation on the rise, rates began moving higher a year ago. What a ride it’s been so far. Rate increases on mortgages and lines of credit have left many households paying hundreds of dollars more per month. This extra cost has emerged amid rampant food inflation that has recently hit levels of 10 per cent on a year-over-year basis.

The upside of higher rates is that savers are getting the best returns in decades. I covered the ins and outs of five different savings options in a recent column and the rates available ranged as high as 5 per cent or so. That’s a darned good result when you consider the level of risk of losing money is close to nil where deposit insurance applies.

How are you feeling about your finances overall after the past 12 months of rising rates? Help me get a sense of things by taking this quick survey. I’ll report back on the findings in an upcoming newsletter.

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Rob’s personal finance reading list

The sad news on housing affordability

Lots of data here on how mortgage rates have jumped in the past year. So much so that owning a house has become less affordable, even as prices decline.

The return of Zellers

In case you don’t know, Zellers was a low-cost department store chain that pretty much disappeared several years back. Now, it’s making a comeback. Here’s a nicely written look at the surprising amount of nostalgia felt about Zellers, and a sneak peek at the relaunch.

Where did all my money go?

A quick roundup of five different budgeting apps. Automate the tedious process of tracking your spending.

Gadgets to save you time and money

A roundup of cheap hacks for organizing your stuff and keeping things clean around the house. Instead of calling a plumber for a clogged drain, use a drain snake kit. I’ve done it – works well to clear bunk from a bathroom sink.

Ask Rob

Q: Wondering if you think it’s better to use mortgage brokers vs the banks for mortgage negotiations. Our mortgage is up for renewal and I’m not sure the bank will give us the best rate.

A: Can’t imagine why you wouldn’t get a quote from a mortgage broker or two in addition to your bank. Compare rates, and terms such as prepayment rules and penalties for breaking the mortgage before maturity. If the best package comes from a mortgage broker, say au revoir to your bank.

Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.

Today’s financial tool

March is Fraud Prevention Month. Here’s a cybersecurity tool kit offered by the Canadian Bankers Association, and a thorough rundown of various types of scams to avoid.

The Money-Free Zone

The David Bowie song Moonage Daydream is stuck in my head, maybe because it seems like perfect rock and roll. Here’s a fresh cover version by Naomi Cowan and the Easy Star All-Stars, and the original.

From the Twitterverse

CBC business journalist Jeannie Lee on the big U.S. retailers that came to Canada and then left after failing to build a viable business. So there’s one U.S. retailer I’d like to see here – the A grocery store chain Trader Joe’s. Has a cult-like following in the United States.

What I’ve been working on

• 2023 Globe and Mail ETF Buyer’s Guide Part Two: Canadian bond funds
• Five reasons to look hard at a 5-per-cent one-year GIC
• Making money the safe way: Pros and cons on five ways savers and investors can exploit high interest rates

More Rob Carrick and money coverage

Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.

Even more coverage from Rob Carrick:

• 🎧 Catch up on Stress Test: Is the middle class dead for millennials and Gen Z? • Gas prices are soaring. Are electric vehicles an affordable solution? • Crypto is booming, but should you invest? • How are young Canadians dealing with soaring rents? • Inflation is squeezing our finances. What can we do about it? • Is a hot housing market squeezing Canadians out of their small towns?
• ✔️ The housing file: How bad is housing affordability? Even a crash won't help • Sell the family home to lock in profit and then rent? Better not • Why young adults can't afford houses: Hard work got you more in the past than it does now • Five reasons you should not buy a house till you're at least 30 • Now more than ever, owning a house is not a retirement plan
• 📈 Investing: The 2022 ETF buyer's guide: Best Canadian equity funds • The 2022 Globe and Mail digital broker ranking: Does the zero-commission revolution flip the script on who's best? • With bonds sinking, conservative investors are waking up to risks they never saw coming • A five-step plan for dealing with the sad fact that almost every investment is falling lately • The best financial advice in advance of retirement? Work on your marriage • One-year GICs are the best deal in town for safety seekers • What to do if the financial plan you paid thousands for disappoints
• 💰 Your money: Are you prepared for the pandemic wealth boom to blow up in our faces? • This hard-working 24-year-old is nailing it financially. But where’s the happiness? • Who should and shouldn’t worry about the wave of rate increases this year, and what every stressed-out borrower should do right now • Don’t make this potentially costly assumption about the CPP Survivor’s pension