There is news brewing amongst eager homebuyers, mortgage holders and money borrowers of all kinds, that on October 25, 2017, the Bank of Canada will be announcing a highly anticipated interest rate announcement...
Is it possible there is an interest rate increase on the horizon?
... and more importantly, why should you care?
Because as potential homebuyers or mortgage borrowers, these rates can make or break the bank, in the long run. Of course, what happens next is anyone's guess, but the increase in interest rates is a relatively new phase in the recent history of lending. After several drops in 2015, the Bank has noted a better-than-expected economic performance this year, which inspired an interest rate increase in July 2017; the first one in almost seven years.
Should the economy continue to grow at the same healthy pace of 2017, the Bank is likely to raise the rates again. But depending on how the interest rates perform this fall, the rate hike could be still months away, giving potential buyers a bit more time to get a mortgage secured at an excellent rate before the increase happens.
If you are a serious, prospective buyer, then I would advise you to get pre-approval for a mortgage as soon as possible, being sure to have a 120-day rate hold. We know the interest rates are going to rise sooner than later, so the sooner you get in, the better your rate will be, seeing as the economy is trending on the up-swing.
Remember, always seek the advice of a mortgage professional if you are thinking of a locked-in rate versus variable.
Keep an eye out for the upcoming Bank announcement on October 25, 2017, and keep in mind that real estate is a good long-term investment. An investment you can use, care for, and have it appreciate in value over time. Be sure to buy only what you can afford, stick to a budget, and don't worry about the short-term up's and down's, since that's just the way it is.
If you're ready and waiting to make the move to Start Living in Ukee, then please don't hesitate to Contact Us to help you make the move as seamlessly as possible
This post was inspired by the information offered here: https://blog.remax.ca/interest-rate-hike-coming-sooner-later/
