Mortgage Rate Discussion
I don’t normally like to post about topics that are as mercurial as interest rates but this synopsis from First National Financial LP caught my eye this morning and I thought it was worth passing along……
“Mortgage rates continue to be a major question for those looking to buy a home. Concerns about rising rates linger and there appear to be mixed signals coming from the Bank of Canada. The central bank has made it clear it is unlikely to raise its benchmark overnight rate until next year. There is even some, growing, speculation the conditions could develop that would warrant a cut in that rate. But Governor Stephen Poloz may have created some confusion in a recent television interview when he talked about an increase in long-term rates.
There are two key issues controlling interest rates right now: inflation and unemployment. The BoC is very focused on
So it appears low rates remain the norm for the moment, barring any major, unforeseen circumstances. But even if long-term rates start to trend upward, as Governor Poloz suggests, that trend will be long, slow and measured.”
Variable rate mortgages are available as low as 2.35% right now so if you can handle the slight up-ticks in rates that are forecast then this might be the option for you. You can always lock in at any time if you feel the time might be right too.
If you would like to discuss this or have any mortgage questions please feel free to contact me.
Jerry Sims, AMP
TMG – The Mortgage Group Canada Inc.