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, and 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 as 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 as 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 with an accepted offer in place within the time frame of your pre-app.
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 or loans or required funds for a renovation, it’s pressing that you review your status 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 or 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 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on “The Mortgage Show”, and is the best selling author of The Mortgage Code where all proceeds are donated to the YWCA.
Angela is a magazine contributor, speaker, and recently collaborated to publish her third book, Pursuit:365. In August of 2020, Angela surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37 and was recently awarded the 2020 Business Leader of the Year Award. Angela leads by example with passion and conviction, known as an industry expert and go-to source for media and publishers across the Country.
For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at email@example.com or 604-802-3983.