According to a recent report by the RBC, Canada mortgage rates are expected to stay on the low end of 5% for some time to come. While it’s always good to take advantage of rates while they’re low, you want to make sure you’re in the right situation to take advantage of them! Here we’re going to talk about what low interest rates mean, how you can make sure you’re getting the lowest one for you and what you can do to take advantage.
Why Are Rates so Low?
Rates are low to encourage borrowing, and borrowing is great! The more people borrow (that they can afford at least) the more homes can be built, people employed, goods bought, it goes on and on. Low rates encourage people to borrow and keep the economy moving, but rates can’t stay low forever. Low rates don’t encourage people to save their money or invest, so eventually they’re going to have to go up to help people that are saving earn an investment or return.
How Long Will They Stay Low?
No one knows, but it’s estimated that rates will begin to rise late next year. This gives you plenty of time to borrow, but you’ll want to make sure that your fixed rate truly is fixed.
This is why you should work with a Toronto mortgage broker like us to get the mortgage that’s right for you. As long as interest rates remain low, you’ll be able to lock in a great low rate that will help you get the best mortgage possible. Even if you go with a variable rate mortgage, as long as you pay it off before interest rates hit the double digits (most economic forecasts put that a long way off) you’ll be good.
What Does a Low Rate Mean?
Low rates mean that you won’t have to pay high interest rates on your mortgage.
Every dollar you pay in interest is a profit to your lender. Canada mortgage rates haven’t been this low in almost 100 years – and that translates to big savings when it comes down to it.
It’s in your lender’s best interest to make sure that you pay as much as interest as possible. Even if you’ve had a long standing relationship with your bank, this just doesn’t guarantee that you’ll be able to get a great deal. This is why you need to work with us!
Can It Help Me Save?
Low interest rates can help you save, but only if you get the right mortgage. Speak with one of our Canada mortgage brokers today; we’ll be able to help you explore your options and understand how your lender’s current offer really stacks up with everything that’s out there.
The last thing you want to do is end up in a mortgage that’s not going to help you save money – we have the business relationships and connections with lenders throughout the Toronto area to help you get the most from your next mortgage. Give us a call today and see how we can help you save.