Rising mortgage rates are a concern to many. Particularly those who are in variable rate mortgages with an adjustable payment (ARM), or for those who have a mortgage that is coming up for renewal. While everyone had to pass the mortgage stress test to ensure they would still qualify with higher payments in a rising [...]
This morning was the Bank of Canada’s final rate announcement of the year, where they confirmed that they will be increasing their overnight rate by another 0.50%. This means that prime rate will now be increasing to 6.45%. This wasn’t surprising as the hike was expected by all industry professionals. The only debate was whether [...]
It’s hard to imagine that a 2.49% mortgage rate was considered high just one year ago. We became spoiled with the pandemic driven sub-2% rates available during the latter half of 2020 and the majority of 2021. When the real estate market peaked in February 2022, the average 5 year fixed rate climbed back to [...]
Whether you’re a first-time home buyer or a home buying veteran, mortgage terminology can be confusing and it’s not uncommon for terms to be misused. It can be difficult enough going through the different options to determine the best mortgage for you. Let alone, trying to get the mortgage terms straight as well. One of [...]
Back in early 2022, there were forecasts indicating that the Bank of Canada would increase their rate by as much as five times before the end of the year. All at the standard 0.25% per increase, which would have put the prime rate at 3.45% to 3.70%. They couldn’t have been more wrong. We’re at [...]
All mortgages are not created equal, and making the wrong choice can end up being a costly or frustrating decision. This is exactly why you should never choose a mortgage based on rate alone. Trying to save a few hundred dollars per year on rate can sometimes end up costing you thousands down the road. [...]
Given that the Bank of Canada has increased their rate by a whopping 3.50% in roughly seven months, it’s only natural to be concerned. Especially considering that they have made it clear that more rate increases will be required. But that shouldn’t have come as a surprise given that this was the expectation all along. [...]
The Bank of Canada announced this morning that they will be increasing their overnight rate by another 0.50%. The overnight rate is what mortgage lenders use to set their prime rate, which means it will now increase to 5.95%. The increases should be implemented by all lenders within the next couple of days. The good [...]
Anyone shopping for a new home over the last few years has had their share of frustration navigating through the sea of buyer competition. The rising interest rates have not made things any easier. As rates rise, so does the qualifying rate (stress test). This makes it difficult for many, first time homebuyers in particular. [...]
With mortgage rates continuing to rise, it’s becoming harder for people to purchase real estate, first time homebuyers especially. There was a time when qualification was based on the actual mortgage payment, however that changed toward the end of 2016 with the introduction of the mortgage stress test. The stress test significantly limits how much [...]
