The latest Bank of Canada announcement brought some new changes to the market. We’ll attempt to answer some of the pressing questions people may have regarding these latest updates.
Why are 5 year fixed rates going up?
This is a result of the banks halting the purchase of bonds. Prior to the latest updates, the rates were artificially low as the banks were buying them to increase liquidity in the market.
Does this impact Variable rates?
No, Variable rates are based on Prime rates which is stable at the moment. However, these rates are expected to rise in 2022.
Are lenders worried that once the rates start rising, people will foreclosure?
No, since B20 mortgage changes in qualifications, people are qualifying at a rate 2% higher. This means they were qualified in anticipation of day rates having to rise.
What does this mean if you are taking a mortgage today?
Fixed rates and Variable rates are still very low.
The spread between taking a fixed and variable will continue to deepen meaning if you take a variable, increase your payments to get the benefits and take away any concerns of payment shock in future.
Remember, there is still a lot of uncertainly in the market, while there is no questions rates are on the rise, the jury is still out for how long or how high with uncertainty being the theme of our future which generally keeps rates low.
Have a solid mortgage plan that gives you the confidence and security in you investment is key, one that has a consistent plan to modify payment with inflation regardless to your selected rate choice.
It’s a great time to review your mortgage, if you or a loved one have,
- a renewal coming up or,
- want to access equity to buy another property,
- do renovations,
- get rid of credit card and line of credit debt to increase your cashflow or,
- going through a life stage change (retirement or separation),
We are here to help you, just a phone call/email away.
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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