And interest rates are going...?
Well, nowhere if Mark Charney well respected former Governor of the Bank of Canada and now Governor of the Bank of England announced last week that they have no intention of raising interest rates until unemployment falls. The Bank of England is not the first bank to make this decision, both the US Federal Reserve and the European Central Bank have also declared what their interest rate will be for future months. Canada will likely also stay the course. So the prime rate should remain low at least until the first quarter of next year. So if you have a tolerance for risk that takes care of the variable mortgage rates, or does it? Well maybe not. Even though prime may remain stable, the banks are looking to make profits and with margins low they will likely stop discounting the prime rate and therefore effectively raise the rate they are charging you. Particularly since the Canadian Government recently, again made changes to how the banks insure mortgages. Bottom line short term variable rates could go up.
What about fixed term mortgages such as 3 - 5 year terms?
These interest rates are based on the bond markets and they have been rising lately as I reported just a few weeks ago.
Confused? No need to be. Just contact me and I will help you sort out the best plan for your home or condo purchase.
I look forward to helping many more families move into their new homes and saving more money this August. To meet for a coffee to chat about your wishes and dreams, just, follow this