Rising interest rates got you down?
With steady interest rate increases over the last few months, and a significant bump in the Bank of Canada interest rate just a few weeks ago, both buyers and sellers are having to regroup and re-think about how that will affect their ability to buy/sell their homes in this rapidly-changing market.
If you are thinking about purchasing a home in the near future, or even just starting to dip your toes to see what’s out there, lock in a mortgage rate with a lender as soon as possible. As all indicators point to rates still rising for the foreseeable future (with the next possible rate change scheduled for September 7), it is super important to connect with a mortgage specialist or broker, talk to them about financing pre-approval, and have them confirm the rate they can offer you. Locking in now versus waiting, can potentially affect your monthly payments by hundreds of dollars, and ultimately what the bank is prepared to lend you.
On the flip side of things, if you are thinking about selling, and have a fixed-term mortgage, a buyer might be able to assume your mortgage at a significantly lower rate than is currently available. As we are starting to see a slow-down in the market due to rising interest rates, this can be an incredibly attractive selling feature to a buyer. Ask your mortgage specialist if your mortgage is “assumable” and what the terms would be. It could work in your favour!
Two really great resources to compare interest rates, calculate mortgage payments and monthly expenses are the Canadian Mortgage App and Rate Hub. I highly recommend using these as references whenever you’re weighing your buying and selling decisions.
