Never a dull moment in our Canadian Mortgage industry – got some great insight into potential changes today that may be coming to our Canadian Mortgage markets…
A) Interest rates WILL rise, but not likely for 12-24 months (reasons are complicated… mortgage backed securities jargon, jargon, jargon, but likely wont be directly increased by the Government via an increase in prime)
B) 10 Year money is CHEAP (3.69%), and guarantees your payment remaining the same, and provides rate SECURITY – my first 5yr interest rate was 3.89%…
C) BE WARY of the fine print on your Bank mortgages – clauses like ‘collateral mortgage’ and ‘bona fide sale’ – stuff like this could tie you to your bank indefinitely. Have me review your current preapprovals and approvals for your peace of mind!
D) A large chunk of Canadians could go into foreclosure if interest rates increased by as little as 2% (thats why professional guidance is SMART- be EDUCATED, dont be house poor)
E) Variable rates may be a smart option for the savvy home buyer – 2.4% is great rate; and Prime rate (government set – 3%) is unlikely to change for a long while – government likely wont be behind any rate increases, they will do this through other means
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