Everyone is following the fact that interest rates are at an all time low. Logic does point to the fact that they should remain low for quite a while. The Bank of Canada did release that they don’t expect rates to fluctuate until at least 2023 which is good news to those wanting to secure a mortgage.

How does this affect you? If you decide to borrow any amount of money you will be paying quite a low interest rate for the next few years. This includes any debt you may have, cars, loans and lines of credit.

If you are currently in a variable rate mortgage, then the prime rate is sitting at 2.45%.  Your payment is based off that plus or minus a component to prime. The variable rate is presently coming down so if you would like to have a look at your mortgage to see if a refinance makes sense to save you money, please get in touch with us to get the process started.

If you're currently sitting in a fixed rate mortgage, then you could be charged a large fee for breaking your current mortgage before the term is up. Depending on your remaining term and the rate you're locked into it may make sense to break your existing mortgage, pay the fee and refinance into a lower rate. There is no cost for us to get your information in front of us, run the numbers to see where your options sit. You may have to wait a year or two before it makes sense for you to refinance but that won’t be known until we go over your details. Whatever your details may be we promise to have multiple scenarios to present to you.

If you are hoping to secure a new home and are looking to secure new mortgage financing you should know that interest rates are at an all-time low, the government of Canada requires you to use a qualifying rate which is currently at 4.79%. Even though you can find a 5-year term with a 2% rate you will have to prove that you can afford double that amount. The goal here is to protect you from a rate hike but this also leaves you qualifying for a much lower mortgage amount.

Deciding when to buy depends on your financial situation. There is no better way to decide what’s best for you than by taking a good look at the current market and getting a professional to properly assess your financial situation. We look forward to speaking with you, so you know exactly where you stand in today's market.