When To Buy

There was alot of excitement last week when the Bank of Canada Increased ithe Bank rate for the 3rd straight time, which then prompted the Banks to increase their Prime Lending rate to 3%. Will they raise the rates again in October? Economists are pretty much divided on this topic - I guess we'll just have to wait and see.


At the same time as we've seen increases in Prime Rate and therefore any Home Equity Secured Credit lines or variable rate mortgage products (which in my mind is still a great bargain at about 2.5% or sometimes lower) , we've seen our long term mortgage rates drop to a fantastic level of approx 3.89% for 5 yrs. Its great to see these low rates, and with House prices stabilizing or even softening in some markets - increased affordability is an obvious positive side effect.

For those purchasers waiting to see if prices will decrease more consider this.

for a 1% increase in long term interest rates this equates to a change in your mortgage payment per month on a 5 year term of approx $60 per month per $100,000 of your mortgage amount - multiply this by 60 months (5 yrs) and again by 2.5 (average mortgage amount in this market is approx $250,000) and you the buyer have just spent an additional $9000 in additional costs over the term.

Something to think about as in many cases it may not PAY to wait

Ask your Real Estate professional to assist you with your unique situation

I always recommend all clients considering a new home purchase to call Pauline First for a free no obligation and consultation to not only confirm your borrowing ability, but also to ensure you have a LONG TERM RATE COMMITMENT from the bank to HOLD THESE LOW RATES NOW.

Of course I am always here to answer your questions and will look forward to hearing from you soon.

Looking for experienced advice? Call Pauline today

Pauline Mountain
TDCanadaTrust
Mobile Mortgage Specialist
Bringing you over 24 yrs Experience.
Cell 250-307-4860
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pauline.mountain@td.com