After the October 25 Bank of Canada ‘pause’ ( the fourth one this year ), it does seem the worst is over - a lot of the banking chatter now revolves around when we might start seeing rate reductions.
We still have a way to go before rates even begin to stabilize though. In anticipation of upcoming mortgage renewals and the sticker shock that may go with the renewal, I’m offering an annual mortgage review to clients, so they can have a strategy going forward. It’s a half hour chat that at least can offer an understanding of what comes next but it can also hammer out a workable plan at renewal.
My general recommendation at the moment is to move into a variable rate mortgage at renewal ( or if purchasing ) and then when fixed rates are at 4% or lower, switch to a fixed rate mortgage. There's plenty to consider in terms of rate discount and even type of variable rate mortgage.
If your mortgage term ends within the next 24 months or anytime after that, I’d like to offer an annual mortgage review to you as well. Even though mortgage renewal may not be a near term issue, it's worth having an idea of ‘what comes next’ particularly in the economic situation we find ourselves in.
I’m happy to help if you perceive a need.
Please don’t hesitate to give me a call anytime and we can been a time for a review.
