A home is the biggest purchase most people make in life. It is essential to proactively weigh your options by working with a mortgage consultant to manage the cost of borrowing because it may save you a small fortune over the years.
To slow inflation, interest rates will rise, affecting mortgage rates and affordability. During the pandemic, home prices escalated in value, which may change your mortgage planning calculations.
The Bank of Canada has indicated that we will experience rising interest rates beginning in March, and further increasing in April 2022. Rising rates can impact your mortgage payments, debts, and possibly investments such as GICs.
Act now to get prequalified, to get the best mortgage rate as soon as possible. You can generally lock in an interest rate-hold now, which can buy you time to get the best deal as you look to Spring. Also, understand your renewal date to avoid a rate increase.
Renewals of a mortgage 120-180 days before maturity is generally allowed.
If you now have a variable-rate mortgage, you may want to consider the effect of rising rates and possibly switch to fixed-term.
Your mortgage specialist can advise you while aiming for the lowest interest rates. There may be penalties for getting out of an existing mortgage before it matures. You can discuss everything with your specialist by simply giving us a call.
Because of the significant increases in real estate value, it is not unusual to need to break a mortgage as people re-evaluate finances in this time of disruption amidst other factors such as a change of career, fast-rising inflation increasing the cost of living while trying to balance the cost of raising a family and needing to achieve affordable housing.
We are ready to assist you as you assess your mortgage and face coming rate hikes. Just give us a call, and we can arrange a meeting.