Mortgage Rates Fall?
“Mortgage Rate Drop By Canadian Mortgage Lenders Considered to Be A Short Term Thing”
Yes, we have been on the rate increase band wagon now for several months and by the way, I’m still on it.
All indications are that interest rates in general are going to continue to rise which means more future mortgage rate increases coming your way.
But with this week’s mortgage rate reductions of 15 basis points with most major mortgage lenders, we are reminded of how complex and interrelated the global financial markets are.
With the financial crisis in Greece, the global domino effect has generated a positive interest rate impact in Canada. Don’t ask me how all the math and money movement plays out to give us a short term interest rate increase reprieve. Just don’t get caught up in any thinking that this is a new trend with interest rates going down.
At the same time, rates right now are lower, so if you can take advantage of this short term rate reduction, it can mean dollars in your pocket over time.
If you have been looking at locking in a rate for 120 days or refinancing strategies, this may be a good time to re crunch all the numbers to see if there is an opportunity for you to save some money going forward.
Its also really hard to say how long it will last. All indications are that the Bank of Canada is likely to increase its bench mark lending rate on the first of June. It has been sitting at 0.25% now for over a year and is expected to start going up this summer.
All indicators are still pointing to the continued rise of long term residential mortgage rates so you would still be wise to consider what you’re going to be comfortable with going forward in terms of the mortgage risk you are likely going to be exposed to if you’re in a soon to be expiring interest term or a floating interest rate term.
If you’d like to quickly see what types of rates we can lock in for you today, I suggest that you give me a call so I can provide you with your relevant options for immediate consideration.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel