June

Rate Increases Coming:

  • It is true that there are rumors of a Bank of Canada may increase the prime rate either 0.25 or 0.5% to 3.55% or 3.7%.  This may seem scary, but it will still be below the pre-pandemic rates.

  • This may also lead to housing prices falling, and this is excellent because it means that people will need less money for the down payment on their property.

Should I choose Variable or Fixed with Rate Hike?

  • While each situation is different…even with the rates increasing a variable rate will still be less than the prime rate usually by at least 1% -- therefore variable rates would save you money.

  • If you decided to go with a fixed rate when the rates were lower, you may save on this particular term of your mortgage, however once the term is up some lenders may not offer the same rate upon renewal.  

  • Thus, you would lose money in the long term

  • That does not mean that fixed rates are a bad thing.  They can offer peace of mind, security, and stability on what the payment would be if the borrower is on a tight budget.  

What is the benefit of a Pre-Approval?

  • A pre-approval can be an excellent tool when looking for a home…even if it hasn’t been submitted to a specific lender.  It can give you, or your clients if you are a Real Estate agent an idea of what your client can afford.

  • The best thing about them…THEY’RE FREE! A Pre-Approval does not cost anything, as mortgage professionals do not get paid unless the mortgage is funded.

Mortgage Masterclass Coming!

  • I am running a free Mortgage Masterclass on Monday June 27. At 6:30 pm.  If you or anyone you know is interested, please respond to this email, and if they are not on the subscription list for the newsletter either have them email or call me at (647) 966-4344.

  • If you have any questions about mortgages, please submit them in your response email and I will answer them during the session!

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2022 Newsletter

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