If you have been considering buying a house, refinancing to see if it you can save money by lowering your monthly payments, or are interested in taking some equity out to pay for some renovations, pay for some upcoming large purchases, or even just to use that money to go on that much needed vacation, then now is the time to consult a mortgage broker and find out whether now is the right time for you and your family.
Also, for First Time Home Buyers I recommend that you get locked into a pre-approval at the current rates!
The following article appeared on Candian Mortgage Trends and explains why you should consider acting now!
Canada’s 5-year bond closed Wednesday at 2.56%…after it’s biggest 2-day jump in eight months.
As most know, fixed mortgage rates are linked to bond yields. Certain non-bank lenders have already reacted by raising rates 0.05% to 0.20%.
While no big banks have moved yet, they may be getting anxious. The cost of funds on 5-year money has soared roughly 30% (relatively, not absolutely) in the last month. The spread between banks’ advertised 5-year rate (3.95%) and bond yields is now down to 1.39% from about 2.00% a month ago. When you factor in branch discretion (i.e., the additional discounts offered to some customers), the spread is often even narrower.
It is difficult to imagine the Big 5 not raising rates if yields move higher. A lender email from yesterday said: “rates are artificially low. Watch for fixed rate increases.” Indeed, it seems some lenders are taking extra pains to avoid raising rates and giving up market share.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I’d be glad to answer any questions to accommodate all of your real estate needs. I can also be reached at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
I look forward to hearing from you!