Mortgage Rates have risen slowly over the last half of this year. The Prime rate has increased by ½% and fixed rates have increased by approximately ¾% in the latter half of 2017.
Over the last few weeks these increases have stopped and we have now seen mortgage rates flatten a bit with some lenders dropping their rates slightly.
We feel that the mortgage rule change coming up in January will definitely slow things down a little and this may mean that the rate increases will stop for a while as the tighter mortgage rules will correct the market without further rate increases.
The Bank of Canada has elected to not increase Prime any further in its last few meetings and so for those of you in a variable rate mortgage it may be a good idea to continue to ride the wave of low mortgage rates on the variable side.
With the mortgage rule change on January 1st anyone with 20% down will now have to qualify for their mortgage at a rate that is 2% higher than they are actually paying. This may lower your ability to borrow by approximately 20%. We need a live offer in place or an approval prior to December 31st to take advantage of the old rules.
If you need any advice on your personal situation please contact our office at 604-556-3893 or email at alex.kotai@ymscanada.ca.
For more information on our mortgage products and your preferred Abbotsford Mortgage Broker please visit our website at www.ymscanada.ca.