Thursday, October 18, 2018

As interest rates start to creep up, homeowners with variable-rate mortgages are wondering whether to lock in to a fixed-rate one.

Since July of 2017, the Bank of Canada has increased interest rates four times, bringing the current rate to 1.5 per cent from 0.5. There is still speculation that there could be one more increase before the end of this year. The Bank of Canada has also given its neutral rate, or the rate that neither stimulates nor restrains the economy given current conditions, as 2.5 to 3.5, which some experts have predicted could come as soon as late 2019. The central bank’s rate affects banks’ prime lending rates. This affects variable-rate mortgage holders, whose payments are based on changing prime rates.

https://www.theglobeandmail.com/business/article-is-it-time-to-lock-in-to-a-fixed-rate-mortgage/

Mortgages Red Deer at //shoplocal.ly/01YT7l

Posted at 12:18 PM