What are Mortgage Interest Rates Up To?

Good Day, hope today finds you well and thriving.

I was just reading an important article in the Mortgage Brokers News. “RBC may be priming the pump for an interest rate hike at the Central Bank, one of its economists arguing prime should soon be pushed up in order to block vulnerable buyers from entering the housing market – that warning coming as banks continue to cut rates in order to win greater mortgage volumes.” see the rest of story

Here are my thoughts and suggestions on this.

What goes up must come down and what goes down must come up.  We all know rates cannot stay low forever.

There are only 2 choices:

1. If you are the type who is nervous about floating rates then I suggest you get your best FIXED RATE. For you, the 5 year rate or 10 year rate your best option….LOCK IT IN NOW.  You can rest assured that your monthly payments will stay the same for the next 5 years.
2. If you are the more flexible type, this phrase is for you: ‘ A positive cash flow is the key to happiness in Real Estate ‘.  With low rates you keep more cash in your pocket .The popular ‘ FLOATING RATE ‘ is best for you …it is always the lowest in the market place. However, in order to protect yourself against any sudden major increase in Interest rates….Here is what I suggest you do:

YOU MUST CONTACT YOUR EXISTING LENDER NOW AND REQUEST the following:

Hello Mr. Lender, I am calling regarding my existing mortgage with you.  My existing mortgage is a variable/floating loan…here is what I need from you.  You must put on my file an very important  NOTICE…which is the following:

“The MOMENT the Bank of Canada Prime rate is increased by at least 1/4 of 1% you will advise me directly of your CURRENT FIXED MORTGAGES RATES and give me the option to choose the best Fixed Rate Mortgage.  Thanks for your time, I await your confirmation.

This may or may not work…however, as my Dad always said…”You never know, until you ask.” Best wishes for this, and let me know if I can ever be of service. I am right here for you!