Fixed mortgage rates finally moved up and they did so with a bang jumping upwards three times in three weeks. The best five year rates earlier in June were around the 2.80% mark while now they have increased to around 3.50%.

Most other terms have also increased including the 10 year rate which we were previously offering at 3.69% and now has increased to 3.99%. With these increases in rates lenders have been extremely busy as people look to lock in their rates. Turnaround times at most lenders have slowed dramatically as a result of this.

The next question now is where will rates go next? The sentiment we have is that rates have increased and will now remain steady for a while. Rates were suppressed for quite some time and so this increase is not unusual. We now expect a period of steadiness over the summer. There are still large economic issues out there which will tend to keep rates lower. A five year rate of around 3.5% is still a great deal. We even have 5 year rates still as low as 3.24% for new deals coming in.

For those of you in a variable rate mortgage the Prime rate has not moved at all and we don’t expect it to go anywhere until at least next year. So if you’re in a variable at under 2.5% it may be best to just stay where you are as there are significant savings still to be had from being in a variable rate mortgage.

Important Reminder Regarding Your Mortgage Renewal

If your mortgage is up for renewal and you are being contacted by your lender to early renew before the maturity date please call or email us before signing the renewal. We are able to give you a quick recap of rates in the market to make sure you aren’t signing for a rate/term that isn’t beneficial for you. Often times your lender will tell you that you only have a very limited time to sign the renewal to pressure you into taking the rate they want. Get in touch with us for a quick 2nd opinion!

If you require any further information regarding this article or any other mortgage matters please contact our office at 604‐556‐3893. Also, as a reminder to anyone looking for a mortgage, we offer 4 month pre-approvals at no cost to you. This means that you can get a rate hold for up to 4 months to protect yourself in case rates rise.