Most have heard about the rate increases from lenders in the last 48 hours. If you have, please read below for more info. If you haven't, please read below for more info.
It’s important for anyone coming up for renewal, in need of a refinance, or looking to purchase, to come talk to us and do a quick review. Depending on the lender, we’re seeing an increase on fixed rates anywhere from 10-20 basis points. So for example, what was a 2.49% is now a 2.59 or 2.69%. Depending on the size of the mortgage, this can mean an increase of $20-100/month, so it’s certainly not insignificant. We have even seen a couple of the big banks raise their prime lending rate from 2.70% to 2.85%, meaning any variable mortgages or HELOCs will increase by 0.15% as well. *Important to note that this won’t impact what people can qualify for (on high ratio deals), but it will impact their monthly payments*
It is anticipated that rates may continue to increase over the next few months and well into next year, so if today’s rates can be taken advantage of, it’s certainly encouraged. Bond yields (in which fixed rates follow) have been trending upwards since the US election. Please note that we can hold our best rates for up to 120 days. It’s also important to note that even after these 10-20bps increases, rates are still at near all-time lows, so it’s certainly not a time to push the panic button, but it is something to be aware of. Because we have access to close to 50 different lending institutions, there are some that have yet to announce a rate increase, but those will most likely be coming soon.
We have had some clients in variable mortgages ask if they should be considering locking into a fixed mortgage right away. While we of course don’t have a crystal ball, we don’t think it’s time to do so just yet, as it’s still quite possible that the Bank of Canada could in fact lower the overnight rate when they meet in December, which in turn would most likely lower lender’s prime rates once again. Also, most variable rate mortgages have a minimum spread of 0.30%, which means they are still lower than most 5-year fixed rates today.
If you'd like to do a quick mortgage review to discuss what your options are, we'd be happy to do so. We're here to help educate you so you can make the best decision FOR YOU. Inbox us to schedule your appointment.
Global news announcement:
http://globalnews.ca/…/heres-how-much-mortgage-payments-w…/…
"The Trump Effect":
http://www.cbc.ca/news/business/rbc-...rump-1.3851491