Are you taking advantage of the best Canadian mortgage rates ever?

Are you taking advantage of the best Canadian mortgage rates ever?

Wednesday, September 26th, 2012

Are you caught in the seemingly endless maze of trying to balance your monthly income with monthly outgoings, unable to find a way out? If so you’re in a club which has thousands of members. With Canadian mortgage rates currently at an all time low, you should take advantage and remortgage your current property with a lower rate than you currently enjoy. By using a free online mortgage calculator, you can enter a few pertinent details and find out instantly how much you can save monthly. Interested? Then read on…

Never look a gift horse in the mouth

If you’re waiting to see if mortgage rates are going to come down any further you may have to wait a long time. Historically, rates have never been as low as they are now and the pressure for rates to increase is growing, albeit slowly. As recently as the middle of August the RBC (Royal Bank of Canada) raised some of its fixed rates and in particular the Special Offer 5-year fixed rate, rose 20 bps to 3.69% on August 21st. Of course this is only one lender and time will tell if there is an upward trend in interest rates on mortgages and borrowing in general.

That’s not to say that every other lender will do the same, or be forced to do the same, but it may well be an indication to the market that the continuous downward trend of Canadian mortgage rates may be coming to an end. It may be that fixed rate mortgages will be available at these historically low rates for quite some time to come as the market continues to drag itself out of recession. However, if that is the case, it could be paving the way for more restrictions and less flexibility than we have seen of late.

The point is that if you are considering re-mortgaging or taking the plunge for the first time now is as good a time as any to do so. Real estate values continue to remain fairly buoyant, although there are geographical differences to be expected. Certain sectors of the market remain at risk but in the main it appears that Canadian real estate is faring extremely well given the weakness of the global economy as a whole. As the global economy recovers and evolves (as it surely will) the gains you make on real estate investment stand to be very healthy indeed.

If you’re in the market for a short term loan then fixed Canadian mortgage rates are great value; however, if you’re in it for the long term maybe a variable rate is best for you but don’t worry, if rates do subsequently decrease and the rate you get now is not as competitive as say, in one year’s time, do what every wise borrower does – re-mortgage at the new lower fixed rate. My belief is that low  interest rates and new, emerging mortgage deals are here for a while longer.

It’s time to take advantage of all those juicy Canadian mortgage rates to raise your standard of living as a whole.