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Insiders Update – April 2018

General Angela Calla 10 Jul

With the Bank of Canada holding rates steady this April, the same is not the case for the bond market, which impacts fixed rates.

In every interest-rate market there are many factors leading to an increase and we are hoping to provide a little bit of clarity on what is happening and what it means to you and your loved ones.

At this time, we see fixed rates increasing as the bond market increases, and our economists anticipate two more Bank of Canada increases of prime rate by the end of 2018.

The full report can be viewed here: http://angelacalla.ca/general/poloz-holds-rates-sees-room-growth-rising-inflation/ & http://angelacalla.ca/general/td-bank-raises-5-year-posted-mortgage-rate-royal-bank-also-upping-rate/

Why do we note this information and how does it relate to you?

If you are in a variable rate, you will want to: 

  1. Review your lock-in options by contacting us or your lender directly. Knowing it’s unlikely the prime rate will reduce and fixed rates are on the rise, there could be a sweet spot to review your options now.
  2. If you decide not to lock in, it’s time to review your discount to see if a higher one can be obtained elsewhere.

Locking in won’t be for everyone, especially if you are making higher payments and your mortgage is below $300,000, which most people fit and will continue on that path. Locking in will be around 1% higher rate than you are likely presently paying.

If however rates raising another half of a percent this year and knowing you can likely lock in around 4% now is most attractive to you, this may be your time. The next announcement from the BOC on Prime Rates is May 30th 2018

If you are in a fixed rate:

  1. If you obtained your mortgage in the last year, stay put.
  2. If you are looking to move up the property ladder or consolidate debt, get your application in to us ASAP so we can hold options for up to 120 days.
  3. If you are up for renewal this year or know someone who is, secure your options now with us to weight out the savings prior to renewal with us keeping a watchful eye on the market.

Please reach out to us so we can help ensure you or a loved is on the right path in our ever changing market.

The Angela Calla Mortgage Team gives you clarity on the best mortgage by being transparent, unbiased free mortgage advice with choice. We are here to help you personally with your mortgage at 604-802-3983 or callateam@dominionlending.ca