Fixed Rates and Variable Rates follow different economic indicators. Fixed Rates are based on the bond market where we are presently seeing notable increases (approx. 12 dollars per 100k of mortgage amount with recent changes). The Bank of Canada is watching the housing market closely. While they don’t intend to raise the rates, it is important to make your decisions with caution, as the circumstances change.
For those in the purchase market, pre-approvals are prudent. Rising rates will likely trigger more housing activity in the near-term. This means those thinking of buying might move off the sidelines, pushing prices higher over the first half of this year.
There is NO reason to panic! Rates are still around 2% and it does not change any of your qualifications. This is because they are based on the 4.79% benchmark rate. Furthermore, there is no current changes in variable rates.
Again, even though there is no reason to panic, below are some key considerations we want you to think about!
If you are shopping for a home
Get a full pre-approval (verification of credit, income and down payment) and stay in communication with your provider on your progress. Rate holds range from 90-120 days and some specials are only available for LIVE purchases. In addition, an accepted offer in place within the time frame of your pre-app is required.
If you have a renewal upcoming in the next year
Time to secure an option, in the event rates continue to rise it may be better to renew early.
If you have debt outside your mortgage
Whether it’s debt from credit cards, lines of credit, loans, or required funds for renovation, it’s pressing that you review your status. This will help to ensure that you qualify to include these things into a new mortgage. By doing so, you will likely save more money every month and improve your cashflow to grow your wealth while rates are still exceptionally low.
If you or a loved one have mortgage questions, a mortgage renewal upcoming, need access to your equity, please reach out to us directly by responding to this email or calling (604)-802-3983 and we are happy to help.
Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages.
In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.
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