If you are considering buying a property instead of leasing, here is information in regards to the mortgage interest rate changes
* Lenders increased their fixed-term mortgage rates. In general, 5-years fixed rate mortgages range changed from 3.09% to 3.54%.
* RBC, TD and CIBC raised their posted 5-year fixed mortgage from 4.99% to 5.14%. Other banks are expected to follow.
The qualifying rate for mortgages will increase from 4.99% to 5.14%. This will reduce the mortgage clients qualification by 2.7% for uninsured mortgages and 4.5% for insured mortgages (based on 20% down and $100,000 of household income).
General consensus is that Bank of Canada will raise interest rates by 0.25% on January 2018. This will make variable rate mortgages more expensive.
General consensus is that fixed rate mortgages will continue to rise in 2018.
As a client, if you will be qualified today for X% mortgage rate, the mortgage companies may hold this rate for 30, 60, 90 days (depending on who is the lender).
The idea is, if you are thinking to buy and you are not sure, you can secure law mortgage rate in case you will decide to buy - something for you to think about.
Now, is a good time to buy.
Now, is a good time to secure low mortgage rate.
The time, before raising interest rates reduce affordability further.
Contact me for more information to get the best mortgage rate and qualification available.