2022 will be remembered for its highly competitive housing market.
Buyers need an edge. Those looking to renew their mortgage can reduce the mortgage approval limiting impact of the stress test – AND get further ahead with their mortgage financing by considering these strategies:
Maximize Your Mortgage
- Evaluate all your mortgage financing options. As a Mortgage Broker, I will help you assess each option. Let’s talk about your mortgage!
- Select a shorter fixed-term mortgage. Currently, 2 and 3 year fixed rates are generally less expensive meaning a modest advantage relative to the 5-year fixed rate.
- Choose a variable rate mortgage*, which currently means a stress test rate of 6.45% instead of mid 7%.
Know Your Risk Tolerance!
If you are going to lose sleep because of Bank of Canada rate increases, *don’t consider a variable rate mortgage right now! Even if the interest rate for a variable mortgage is less than the fixed rate mortgage, it could cost you more in the long run.
The Bank of Canada has raised interest rates a whopping 2.75% since April of this year, representing an unprecedented series of increases. Another increase is expected in October. Economists predicted a 1.5% increase for this year.
What we know for sure is that nothing is certain. Understanding your choices and how those choices will impact your finances is one way to get a better night’s sleep.
When it comes to mortgage financing and decision making, the more you know the better! Be informed. Ready to learn more? Let’s talk mortgages today!
The Sweet Life
Oh how sweet it is! Enjoy these happy snaps – the first of our adorable granddaughter, Lena. We spent some summer time with her in Vancouver. The second picture is my husband, Sid who finished 3rd in his division in an Ironman competition in Penticton, British Columbia. Outstanding!
