VARIABLE & FIXED RATE UPDATE
Happy New Year! As we enter 2012, little has changed in terms of rates. The spread between the variable and fixed is still nominal making some fixed rates relatively more attractive when applying for/renewing a mortgage. This, of course, depends on the specific situation of the client. Forecasts continue to suggest low rates throughout 2012 and a slower real estate market. Moreover, there has been some concern with rising debt levels for CDN households.
With the sustained low rate environment & rising debt levels, it’s a good time to evaluate your personal finanical position and goals to determine if it makes sense to take advantage of these rates and potentially consolidate some debt to reduce your interest cost. On the same note, property assessments are out and while some areas have changed, others have stayed the same which can have a direct effect on the ability to refinance given that there is a correlation between these values and market values. If you have any questions on this, please feel free to contact one of us and we’ll be able to discuss options with you. All in all, the global economy remains uncertain and information can change very quickly which affects what we do, so get in touch anytime if you are seeking advice on your mortgage options and strategies. ***REMEMBER, we are able to hold interest rates for 120 days for you.
