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Fixed Rates Continue to Rise

Not only has the Bank of Canada recently increased the overnight lending rates, but fixed rates have been steadily increasing for the last 10 months. If you are considering purchasing or refinancing, waiting just a couple of days can cost you thousands in additional interest charges. Below are just a few things you need to consider. If your mortgage is up for renewal sometime in the next few months, I have found penalties in most cases not to be too high, making it very affordable to make sure you lock in now. Waiting till your mortgage matures might cause you to have a much higher rate. Last week the Big Banks all raised their Fixed Rates. Fixed Rates follow Bond Yields which have surged to a 3-Year high. On that, we can expect that rates will continue to rise. In the last year, we have gone from a 5-Year fixed rate of approximately 1.5%, to a 5-Year Fixed rate over 3%. Rates have more than doubled. Although Variable Rates are unaffected by the Bond Yields, the spread on Variable Rates has tightened recently also. For example, previously the average discount for a Variable Rate was around Prime Minus 1.0%, that spread has been tightened to about Prime Minus 0.8% for the average mortgage. So as you can see, waiting for your upcoming renewal, or waiting for your upcoming purchase can cost you quite a bit in increased interest costs. If you have either a Fixed or a Variable Rate mortgage and you would like some advice, please don’t hesitate to contact me. I would be happy to offer you Free advice as to what options might be available. f you think this information could help out a friend or a family member, I would really appreciate it if you would forward this email or provide them with my contact information. I will look after them as if they were a friend or family member to myself.

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Phone / Text 403-828-1838 Email: mortgages@shawnmooney.com Website: www.shawnmooney.com

Some conditions may apply. Rates are subject to change. Subject to lender / insurer approval.