Me holding the rate boomerang...
Our second renewal offer for our mortgage was for seven years at 4.84%. When I spoke to the bank manager, he asked if I was sure I wanted to lock in for that long.
My response; ‘When are we ever going to see rates like this again?’
Our previous 5 year rates had been around 9, something and 7.49%...
This was a while back, but it provides a little perspective on yesterday’s announcement.
Not surprisingly, a lot of the inquiries I get these days are around fixed rate offerings.
With today’s Bank of Canada increase, if you’re in a variable rate mortgage, then you are likely now paying around 4.45% for the mortgage and if it’s an adjustable mortgage, the bad news is your payment will increase again.
Although the variable rate mortgage will always be my recommendation, there’s the option to switch to a fixed rate mortgage, although the rates will be higher still. The extra challenges with a fixed rate mortgage are increased early payout penalties as well as paying more in interest rate costs over time.
I know for many of you rates like the ones offered today are crazy but, for those of us of have been around a while, it doesn’t seem that bad.
If you want to learn more about the rate you’re paying versus what’s available or even do a quick mortgage review, don’t hesitate to give me a call.
Comments