Let's chat: 306-280-0054
|
|| TMG The Mortgage Group

What's in store for variable rate mortgages?

👉What's in store for variable rate mortgages?

The next announcement from the Bank of Canada is scheduled for October 26. These announcements of rate increases only affect variable mortgages (and home equity lines of credit), not fixed mortgages.I say "rate increases" as it is estimated the BoC will increase another .50% - .75%. Inflation is still in the high range, and so the BoC will raise rates to slow our spending and decrease inflation.Is it time to lock in? It really does depend on the reason you chose a variable mortgage in the first place. 

Often clients choose variable mortgages understanding the level of risk while maintaining a high level of flexibility within their mortgage and their lifestyle. Throughout the term, variable mortgages often have clients saving money on interest costs in the long run. It's worth noting that every person who is in a variable mortgage over the past few years has already been stress tested at this higher interest rate amount. That means that we are not outside of our range of affordability. ***If at any time you are not able to make your mortgage payment on time, contact me for help!***

The news is always filled with worst-case scenarios and click bate, with stories that don't have anything to do with the prairie real estate market. Talk to a professional before you let your blood pressure get too high. 🙃Send me a message, I'm happy to chat.