Fixed mortgage rates in Vancouver BC going up?
Fixed mortgage rates in Vancouver BC going up?
This is a warning/notice! (not that dramatic but please read and ask me any questions you have or are thinking of. If you just want to chat about your mortgage, that is fine too, I would love to hear from you)
Confirmed that fixed mortgage rates are starting to edge up ever so slightly, could go over the 4.00% mark as early as next week. This started a couple weeks ago when a few banks that were running promotions pulled them. In their place the current promotions are similar in nature but have just a slightly higher rate.
So, if you fall into any of the below categories or if any of the situations apply to you, let me know and we can discuss what may be in your best interest immediately so you don’t miss out on any opportunity to save money with your mortgage and today’s low rates.
First Time Home Buyer (FTHB) – If you have been wondering if you should buy your first home or if you have even begun your search, it may be in your best interest to buy sooner than later. Home prices are likely as low as they are going to get and rates are also pretty much at the bottom if not already on their way up. The only place then both of these numbers can go is up which could price some people back out of the market that are currently in a position where they could afford to buy. To get hard numbers and real information that you can base your decision on whether to buy or not in Vancouver BC, please contact me at any time.
Fixed vs. Variable - Nothing is new here really for the most part, same story/situation for the past several months. However, the pricing has come down slightly for the variable. Fixed rates are super low, for now at least, so low that most people are opting to have this ultra low rate locked in and guaranteed for the next 3-5 years. Having said that there is still the 5 year variable rate for those that like or prefer that option. With the variable you are getting a lower rate today and at least for the next while (6-12 months likely), however, bank’s prime rate will rise and could go up quite a bit over the 5 year period. This could result in 2 things, one being your rate could get high and surpass the fixed rate you could have if taken today. The 5 year variable rate mortgage does allow you to lock into a fixed rate down the road, however, rates “down the road” will almost for surely be higher, possibly much higher, than the rate you could have had if taken today. These factors are what is causing most people to opt for fixed rates at this time, however, every person should decide what is best for themselves given the available information today.
Time to refinance and pay your penalty - For some people who want or need to access equity in their home for things like: pay for renovations, consolidate debt, travel, pay for a child’s education, buy a vacation property etc. now is a good time to at least investigate this options. Depending on the rate one currently has for their mortgage and the remaining time left in their term, the savings that one will realize with a lower rate available today, combined with paying down the principal on the mortgage faster with a lower rate, could translate into considerable savings even after taking into account any “penalty” that may be required to pay to get out of the current term. As every situation is different it is best have a personal review of your situation to know what the best option is for you.
Lock-In your current variable rate mortgage – If you are currently in a 5 year variable rate mortgage and if it has a considerable amount of time (more than 2 years) left in it, and you are happy in your current home and see yourself remaining there for the foreseeable future, you may want to consider locking your current variable rate mortgage into a fixed rate term. This is because rates are as low as they are going to get for a very, very long time. And, if you do not see yourself re-locating or switching properties (as this may involve other costs that need to be considered) it could be a very nice situation to be able to lock in today’s very low rates and enjoy them for the next several years. This would allow you to save money with a low interest rate, fixed and guaranteed for the term you choose in addition to paying down your principal faster with a lower rate.
For more information on this or any other mortgage related topic in Vancouver, BC, please contact me at any time.
(604) 603-2520 / Maury@MauryLum.com / www.MauryLum.com
I am always searching online for articles that can help me. Thank you
Ooohh, It’s a rare find for a nice web site like this. I enjoyed it. Kudos to you. Have a very nice day!
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
this article is exactly what i have been looking for! found your page bookmarked by a friend of mine. I’ll also share it. Thanks again!