Mortgage Matters: A New Frontier

2025-03-17 | 09:08:24

March 18, 2025 ~ Last week the Bank of Canada announced its key interest rate cut of 25 basis points to 2.75 per cent, while 25% tariffs were introduced overnight by the U.S. on steel and aluminum products coming from Canada.

”Depending on the extent and duration of new U.S. tariffs, the economic impact could be severe.” Macklem said that the “pervasive uncertainty” has already shaken business and consumer confidence. The bottom line: A prolonged trade war could decrease the supply of goods, and increase the price of goods for Canadians while weakening their desire to spend.

Get the BIG picture here: https://www.ctvnews.ca/business/article/bank-of-canada-cuts-its-key-interest-rate-to-275-as-tariffs-roil-economy/

What Does This Mean for Mortgage Financing?

Whether you’re considering making a move, renewing, refinancing. or switching to a variable rate mortgage, you need a solid understanding of your financial position, what options are available to meet your specific needs, and most importantly, a voice of reason during uncertain and turbulent times.

Benefits of a Variable Rate Mortgage

• You will be in the best position to take advantage of rate decreases and savings without renegotiating your mortgage and paying an expensive penalty.
• You can lock into a fixed rate term (without any penalty) if rates start to rise by locking into a cumulative term greater than your current term. For example, if after two years into a 5-year term, you want to lock into a fixed rate product, you could need to take a 3-year or greater term.
  
  

One More Thing About Variable Rate Mortgages

Make sure you are with a lender that adjusts the payments with the prime lending rate changes so you don’t get caught with a negative amortization and extra payments required. 

Ready for more expert mortgage advice? Talk to me, Tracy Irwin, Mortgage Broker. If you’re not in the mood to talk mortgages (and seriously who could blame you), try out my six free mortgage calculators

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