According to Bank of Canada, it has been said that mortgage rates are likely to rise , affecting prime rates. This is the rate that would also be used to determine your variable rate.
The last time we had a rate hike was in September, 2010. After 7 years we could use a refresher on what happens when rates are set to increase.
First senario, and the simplest one: If you are in a fixed term mortgage, they are locked in for the entire term. Most terms are usually about 5 years, therefore nothing changes as your rate is guaranteed not to change.
Second Senario: If you have a fixed rate mortgage and it is coming up for renewal shortly; you can set your mind at ease. WHY? Because fixed rates are influenced by bond yields and not prime rates.
Third senario: If you are currently in a variable rate mortgage and worried about having a higher monthly rate (if indeed rates do go up), you may want to consider speaking to one of our highly trained mortgage agents about changing it to a fixed rate mortgage. Although you you may be paying a higher rate upfront, it will further protect you from any rate increase in the future.
Rumor has it that if there is a rate hike it will not happen until July of 2018. If not, it will not be changing at all. But then again, it’s a Rumour.
For more information on mortgage rates, call us today at Noble Mortgages at 416-241-2227 or email us at email@example.com