Last week, the Bank of Canada raised rates again. The prime lending rate now is at 4.25%. If you’re planning a purchase and need a new mortgage, what do you do now? Where are rates heading from here?
If I had the proverbial crystal ball, I could tell you. Sadly, that tool eludes me. However, industry experts are saying that they aren’t anticipating any more rate hikes for a while. They are waiting for inflation to slow down, which they believe will happen by March of 2023. Rates are forecasted to stay the same or slightly lower for the year of 2023 and then start lowering after that.
But this doesn’t mean you have to put your plans to buy on hold!
A potential strategy if you are renewing or looking for a new mortgage now is to sign up for a variable rate. If your rates go down, you benefit! You could lock into a shorter term (2-3 years), so that if rates go down you can get out with a lesser penalty or sign up for an open mortgage. Everyone’s situation and comfort zone are different. Call me today to discuss what may work best for you in today’s market. I look forward to speaking with you!
