As a single mother, Lara Sarkoobi carries a lot of weight on her shoulders. With the cost of living continuing to rise, she’s had no choice but to turn to On Rock’s food bank for help.
“All of my money from work goes to rent and groceries,” said Sarkoobi. “And most of the time, I have to use my credit card. I have no choice.”
Sarkoobi is just one of the West Island food bank’s more recent clients.
On Rock’s president says in the last year, around 100 new families are using its services, every week.
“We’re seeing families come to use the services of the food bank that never dreamed that they would be here,” said Kim Reid. “They never thought they would ever be in a place financially where they couldn’t take care of their rent, their mortgage and their food.”
That means the news of another interest rate hike on Wednesday from the Bank of Canada is a hard pill for many to swallow.
New analysis suggests that people are buying less food because they can’t afford to, according to Sylvain Charlebois, the director of Agri-Food Analytics Lab at Dalhousie University.
“Right now because of food inflation people are buying less from grocery stores. They’re buying different brands, they’re going to different places, they’re going to dollar stores to buy food,” said Charlebois. “So they’re doing everything they can to save money and spend less on food.”
And many are spending less on food, he says, because of lodging costs.
Another interest rate hike inevitably hurts homeowners and tenants, as mortgage and rent rates continue to rise.
“If you bought a house last year at $500,000 with a 20 per cent down, amortized over 25 years, you’re basically probably paying $1,100 more a month to make sure you’re keeping a roof over your head,” said Charlebois.
Meanwhile, Montreal real estate agent, Shanna Garneau says if your mortgage is up for renewal and you’re nervous about the high rates, it’s best to consult a professional.
“The sooner you speak to a mortgage broker and find a proper plan that suits your financial capacity, you should be able to find the proper solution in order to avoid any stressful financial situations,” she said.