Due to the current economic climate, The Bank of Canada has announced that it will begin increasing its benchmark rate this year. It will mean that qualifying rates to obtain a new mortgage will also increase.
However, homeowners shouldn’t expect any dramatic changes at the beginning of 2022. In fact, as of the 1st quarter in 2022, the rates have not risen. In addition, most industry professionals are expecting an overall hike of 0.5% to 1% over the next twelve months, which is a marginal increase.
With the rate hikes on the way, I’m encouraging my clients to think about what they may need to borrow in the next year or two. For example, if you have been thinking about consolidating or renovating your home, then now is an excellent time to go ahead and take advantage of the lower rates. It’s also a great time to pay off existing debts at a low rate.
On a final note, while the rates might be steadily increasing, homeowners shouldn’t panic as the changes will be marginal. The best course of action is to speak to a professional that can guide you and answer all of your concerns.
If you’re interested in purchasing a home, then contact Julie Brenneman of The Mortgage Centre Hometown Financial today. With over fifteen years of experience, I will help you with all your mortgage needs in Chatham, ON.
My services include debt consolidation, real estate investments, mortgage financing, mortgage refinancing, first-time homebuyer mortgages, and pre-approvals. I also assist with purchase plus improvement mortgages, bridge financing, zero-down mortgages, new to Canada mortgages, and reverse mortgages.
I serve clients across Chatham, Sarnia, Dresden, Blenheim, Tilbury, Ridgetown, Glencoe, and the surrounding areas.