Mortgage Rates are on the Rise for Edmonton homeowners.

26 April 2010 No Comment

Edmonton Home Builders

If you follow the news, you have heard about it– Mortgage Rates are on the RISE! Now that the economy is showing signs of recovery, the inevitable has begun to happen – increasing mortgage rates…..currently, it is fixed interest rates that have started increasing (interest rates that do not fluctuate during the term of your mortgage), but variable rates (rates that fluctuate) are also expected to start increasing as early as June 1, 2010.

This spring market looks to be a great buying opportunity – property values seem to have stabilized from the hot market that ended in 2007 and interest rates are at record lows, making home buying an attractive idea for many Canadians. Whether it’s your first home, or you are looking to upgrade from your current home, getting your financial ducks in a row now can save you thousands of dollars in interest when you are ready to purchase that perfect property.

What can you do to safeguard against rising mortgage rates if you haven’t begun searching yet or are currently looking without interest rate protection? An independent mortgage associate can find the perfect lender for your financial situation and secure an interest rate for you for up to four months. This way, your rate is protected from the rate increases lenders and financial experts caution are expected to continue. The best part – if interest rates should instead decrease during your rate protection period, you will receive the lower interest rate. In other words rate protection offers all win and no risk!

Securing an interest rate when you are house hunting is key. Even a small increase in interest rates can make a big impact on your monthly mortgage payment and the interest you will pay in your mortgage term. Just a quarter point interest rate hike will cost you almost $3,700 more over a five year term on a 300,000 mortgage* – however, since the end of March 2010, interest rates have increased by over a half a percentage point. Coupled with the newly announced increases in the news over the last couple of days, the end result will be increases of up to a full percentage point in just three weeks – a potential of almost $15,000 more interest paid over the term.

Interest rates are expected to continue to rise with the economic recovery. Interest rate protection is a prudent way to ensure you will be prepared to make an offer when you find the perfect property. While some lenders have already started this second round of increases, there are others that have held off for a day or two. However, they too will begin to match the increases other lenders have already initiated. Don’t get caught in the higher rate increase! All it takes is talking to an independent mortgage associate to secure a great low rate.

If you’d like to secure a mortgage, you are welcome to use the contact form below. A mortgage specialist with Axiom Mortgages will contact you within 1 business day.

This blog post was provided by Julie Cooper with Axiom Mortgage Solutions.
Julie Cooper CMA, AMP
Tower Mortgage / Axiom Mortgage Solutions

780.982.1154 f.1.866.891.7305
towermortgage@telus.net
www.towermortgage.ca