With the return of a buyer’s market, finally a reduction in the qualifying rates assists both people buying a home or people looking to access to their equity to take advantage of the situation.
- If you are currently shopping for a home, review your pre-approval with your mortgage broker. On a $500,000 mortgage, the new rate increases your buying power on average by $10,000. This could be the difference in you winning the bid, getting that extra parking spot or slightly higher square footage.
- Rates have been going down; that coupled with the recent qualifying rate reduction could improve your rate and cash flow as well.
- If you have an existing mortgage with a rate more than 3.2 per cent, it’s worth a review to see if it’s beneficial to break it and get a new term. Everyone’s scenario will be different based on their existing equity, income, credit and their lender. A mortgage professional can guide you through it. Once those numbers are worked out, it will be easy to make a decision based on the numbers after penalty and costs.
In this ever changing mortgage market, it’s been incredibly exciting to see homebuyers entering the market after a few rough years and getting some relief! Looking forward to more changes to come with the Bank of Canada and how the federal government’s homebuying plan will roll out in upcoming months.
Stay tuned and here to help with any clarity.
Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at firstname.lastname@example.org or 604-802-3983.