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  • Writer's pictureJames Mckeown

Navigating Rising Mortgage Rates: What Homeowners Need to Know




Author: James McKeown


 


If you own a home and your mortgage renewal is coming up, you've probably noticed that mortgage rates have been changing a lot lately. Here's a simple breakdown of what's going on and what it means for you.



A Quick Look at Recent Rate Changes

Just a year ago, in October 2021, you could get a 2.39% fixed rate or a prime minus 1.10% variable rate for your mortgage. Now, those rates are up to 5.64% and prime minus 0.40%. What does this mean? Well, if you had a $350,000 mortgage and chose a fixed rate, this change could cost you about $36,960 more over your mortgage term.


What’s Next for Mortgage Rates?

The truth is, no one can predict exactly what will happen with mortgage rates. Some experts think they might go down soon, based on past trends. Others believe that we might not see super low rates again anytime soon.


What Should You Do?

If your mortgage renewal is due soon and you're worried about rates going up more, you might want to renew early. This can help you avoid higher payments. But, if you think rates might drop and you're okay with the risk, you could wait and see what happens.


Looking at the Big Picture

Even though we all want lower mortgage payments, there's no guarantee that rates will keep dropping. The overall situation with housing prices and affordability is complex and doesn’t always mean lower payments for everyone.


Final Thoughts

Rising rates can be tricky to navigate, but understanding your options is key. Remember, if you need help figuring out what to do with your mortgage, I'm here to help.



Need Expert Mortgage Advice?

As an experienced mortgage broker, I am dedicated to helping you navigate the complexities of Canadian mortgages. Reach out for personalized advice and find the ideal mortgage solution for your needs.




 



Author: James McKeown

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