It’s always difficult to predict where rates are heading, but the Bank of Canada (BofC) is set to make a rate announcement this week and it may raise rates. Why? Everything is humming in the economy. Rates go up because of expectations for inflation. In simple terms, the BofC raises rates to help keep inflation low.

Here’s some expert information to help you with your mortgage:

1. One mortgage lender that we work with, noted that 47% of all mortgages in the Canadian marketplace are coming up for renewal in 2018. If your mortgage is renewing in 2018 consider renewing early, even if there is a slight penalty to pay. This is especially true if you’re carrying credit card or line-of-credit debt that you’re not paying off monthly, and can consolidate that debt into the mortgage.

2. If you have a variable rate mortgage, stay the course (unless of course this is causing you anxiety). Remember the BofC doesn’t raise the different bank prime rates. Financial institutions adjust their own prime lending mortgage rates. You likely have a variable rate mortgage that’s at the prime rate minus a certain percentage. You’re probably paying under three percent. If you lock into a fixed rate term, you’ll be locking in at over three percent, or possibly a half percent higher.

3. If you are buying a house this year, talk to us as soon as possible. With the new mortgage changes your old mortgage pre-approval may not be valid anymore. Check in with us to ensure you can still qualify for the mortgage that you want!