DON’T PANIC – what you need to know about current rates and your mortgage!
Most people don’t know that the Bank of Canada can make up to eight rate changes a year. The key drivers of interest rate changes are inflation and economic growth. Over the last 10 years we have been in a period of historical low rates, which will continue because of Canada’s conservative fiscal policies. What’s problematic with low rates is the cost of borrowing has also been so cheap. Many banks are also under investigation for practices that encourage people to get into more debt! Take your own personal responsibility to live within your means, but if you’re having challenges please call us.
Things to be aware of with your mortgage and interest rates:
1. Variable Rates – should I lock in now? I have a variable rate on my own mortgage and I’m not locking in. If you’re in a variable rate with the goal of paying down your mortgage then remember rates also come down. Now is a great opportunity to use the pre-payment privilege of the mortgage and make an extra payment on the mortgage. If you selected a variable rate mortgage originally because it had the lowest payment and you were concerned about cash flow, locking in is a good idea.
2. What happens when my mortgage renews? If your mortgage is renewing in 6 months call us now and don’t wait for your existing lender to contact you as you’ve probably already missed the opportunity to get a better rate. We mail and call you consistently 6 months before! Don’t ignore our efforts. There’s a reason why we’re contacting you!
3. What happens if I’m not paying off my credit cards or lines-of-credit each month? Contact us immediately to look at a strategy to pay-off your debts and improve your cash flow. If you’re not paying off unsecured debt monthly be proactive and look at options to consolidate the debt into your mortgage.
REMEMBER, WE’RE HERE TO HELP YOU PAY OFF YOUR MORTGAGE DEBT AND GET A GREAT MORTGAGE THAT COMBINES GOOD RATES AND FEATURES! CALL OR EMAIL ME IF YOU HAVE ANY QUESTIONS ABOUT ANYTHING RELATED TO A MORTGAGE AND REAL ESTATE!
Other interesting reading for you!
http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/ (see the 5 year bond to understand what’s happening with fixed rates)
http://www.bankofcanada.ca/2017/09/fad-press-release-2017-09-06/ (press release from BofC for change in overnight lending rate