The best Mortgage related news as of late was the Bank of Canada’s decision to reduce their overnight rate earlier this month. This basically means that anyone who is currently holding a variable mortgage or any debt tied to the PRIME rate will get a break of .25% off their interest balance moving forward. To put this in a mortgage context, an average variable mortgage holder of $500,000 will realize about $150 less per month. Although this is not much in the big picture, we can take this as a sign of things to come and feel a small sense of relief. – “It’s about the little wins”
As I mentioned in my last update, these Bank of Canada rates drop’s likely won’t happen too fast so keep hanging in there. My prediction is we will see the variable rate mortgages in the 4’s by this time next year. The thing that I am more excited about is the Bank of Canada’s signal is trickling into lower fixed rates which are now lower by anywhere from .20-.30% (basis points) compared to my last rate update. “Little win here”
Even with rates edging down, you may still be finding it difficult to manage. My advice as a Mortgage Broker is that you should look to restructure your mortgage and consolidate your other debts (ei. car payment, line of credit, credit cards) into a bigger mortgage but stretch out the amortization and lower your mortgage payment as much as possible. Yes, you are extending your debt by so many years: however, you can always shorten your amortization on your next term and catch up. “More small wins”
Before I go for the long weekend, I wanted to let you all know that I have recently moved from Butler Mortgage Inc to The Mortgage Group (TMG) which is a fully national operation with great systems to make our lives easier. Look out for communications to come from my new TMG platform.
See the rates above if you are interested and as always, feel free to reach out directly to me if you have questions. We would love to hear from you.
