It's safe to say that the Bank of Canada (BofC) will eventually lift interest rates. But what's less clear is when. We can expect that the BofC will maintain the current interest rates, with no rise in tomorrow's interest rate announcement. That means if you have a Variable Rate Mortgage (VRM), your rate will remain the same.
If you own a house in Guelph or the Tri-City area you know that our housing market has been strong and steady. On the mortgage front, one area of concern is the mortgages choices I'm seeing. A VRM is a great option if you're looking at paying down your mortgage in the next few years. Accelerating the payments while rates are low will help you pay down your mortgage principal. If however you're choosing a VRM just to keep the payments low to help with your budget - then you may want to reconsider a fixed-rate mortgage.
Your mortgage broker can get you a five-year fixed rate mortgage now for under 4% which is a great option.
