After the Bank of Canada started hiking interest rates in 2017 many home owners were worried what this might mean for them. But the Bank stopped raising rates in October 2018 when the overnight rate reached 1.75%. On Wednesday the Bank announced that they will not be raising rates this month and most experts are speculating that we won’t see another hike until late this year or early next year.
What it means for home owners
If your mortgage is up for renewal you’re in luck! Rates are low, almost as low as they have ever been, which mean you’re going to get a deal you’ll be happy about. If you aren’t up for renewal any time soon you may want to consider refinancing your mortgage. This means ending your mortgage and opening a new one, usually with a new lender. Doing this will have fees and penalties but they may be worth it depending on how much money you stand to save. Plus, many lenders will cover the cost of breaking your mortgage or will allow you to roll the expense into your new mortgage. To find out the particulars of your own mortgage take a look at your mortgage agreement, speak to your lender, or contact us today.
Refinancing has a bundle of benefits. Most commonly home owners choose to refinance in order to get a lower interest rate, a smaller payment, or to switch between variable and fixed rate mortgages. Home owners may also refinance in order to consolidate debt. This means they move debt from credit cards, lines of credit, vehicles, etc and transfer them to their mortgage. This can be helpful with minimizing monthly payments and may also help pay debt off faster. Refinancing also allows you the opportunity to take out some of the equity in the home. This is most often done with a home equity line of credit (HELOC.) You can use this money for renovations, investments, a trip, or whatever large expenses you need to finance.
To find out what options are available to you contact us today. Presently we can offer a fixed rate of 2.99% and a variable rate a fraction smaller. Locking in your rate now is a good idea before rates go on the rise.