Economists have predicted that the end of an era is near – the low interest rate era that is. And in response, Canadians are flocking to get locked into mortgage preapprovals. If you are someone that is considering a real estate purchase, I would advise you contact a reputable mortgage representative as soon as you can, to do the same. Most pre-approvals will hold a rate for 120 days, which will allow you the flexibility to continue your search with ease and the peace of mind that you need.
A one percent increase in mortgage rates from what we see in the current market will cost the average new buyer an additional $230 (equivalent to 12% more) in additional monthly interest payments.
Mortgage pre-approvals are the first step in the home or investment buying process. They are key to understanding your buying power and with interest rate increases imminent, there is an added reason why you should take advantage in the short term. Your mortgage agent will also have you understand what impacts an increase will have to the interest and principal amounts on your mortgage, they can walk your through numbers that will impact your bottom line.
If you would like to speak to someone regarding your existing mortgage options or are considering a purchase in the near future, reach out to me and I will connect you with a qualified professional that can guide you.