Rising interest rates by a quarter point
Rising Interest Rates
The Bank of Canada today announced that it has raised its key
interest rate by a quarter point, the sixth time it has done so since
September 2005.
While today’s announcement will result in an increase in the rate for a
variable-rate mortgage, lenders do vary in when exactly they adjust
their rates for variable-rate mortgages. In recent weeks, pricing
on variable-rate mortgages has become increasingly competitive.
“As competition in the marketplace goes up, so too does the size of the
discount lenders are willing to offer, and Invis has witnessed mortgage
lenders battling for market share for variable-rate mortgages at
discounts well below Prime — discounts not seen in the Canadian market
previously,” says Andrew Moor, president and CEO of Invis, one of
Canada’s largest mortgage brokerage firms. “Many of these offers are
available from independent mortgage banks that only offer their
products through mortgage brokers.”
Fixed-rate mortgages are not likely to be affected directly by today’s
announcement as their rates are influenced more by trends in the bond
market.
In an ever-shifting interest rate environment the right mortgage
strategy is crucial – My accredited mortgage professionals can advise
you on how to get the most from your mortgage financing.
With upward pressure on interest rates, it makes sense to have buyers
or clients planning a refinance to obtain mortgage pre-approval.
You can be pre-approved quickly, and you will receive a “rate hold” for
up to 120 days.
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