As the US economy improves, it's becoming less necessary for central banks on both sides of the border to hold down interest rates. Long term fixed mortgage rates have been climbing for many months now. And as the economy continues to improve, it will eventually become necessary for the Bank of Canada rate to rise, which would have a direct impact on variable rate mortgages. Currently, the Bank rate is at 1%, but some economists predict it could start rising by late 2014 and reach as high as 2.25% by the end of 2015. Of course, even if mortgage rates rise by a couple of points, they're still very low historically. But what matters to mortgage holders is payment affordability if they're in a variable mortgage or they need to refinance. Depending on what your rate was when you first took out the mortgage, the new rate you'll be paying could be substantially higher. To see if you're at risk of payment shock, give me a call. I'll do a free analysis of your current mortgage to see how rising rates might impact you. If risks exist, we can discuss the possibility of refinancing now before rates rise further. Rest assured, I'll discuss all your options, offer affordable alternatives and help make sure your financial future is secure. Call me today. Mark Kupina | www.kupinamortgage.com
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