We’re living in a world right now that’s controlled by COVID-19 and the consequences it’s creating around the world. This pandemic has caused markets to drop significantly, borders to be closed, and a strain on business globally.
Mortgage holders, such as Jenn Slater from OneSt Mortgage, have had dozens of questions around what this means for their mortgages. Here is a glimmer of great news in a world living in limbo.
“We’re currently experiencing mortgage rates at historical lows“
According to mortgage expert Jenn Slater, “with markets moving downward, this is pushing bond rates down as well. It happens that fixed mortgage rates are based on bond rates, so we’re currently seeing mortgage rates at historical lows. The lowest fixed mortgage rates ever!”
The Bank of Canada has also dropped their overnight prime rate twice in the last week. How does that affect variable rate mortgages? Slater shares, “lenders usually correspond by dropping their own prime rate when the Bank of Canada does, but not always. All lenders did drop their prime rate with the first rate drop last week, but so far we haven’t seen a second drop.”
These low rates make it a great time to buy real estate. If you are in the market for a new home, current mortgage rates may help you with a significantly lower payment than it may have been 6 months ago.
“These low rates make it a great time to buy real estate.”
It also happens that if a buyer were to be approved for a mortgage now and you don’t take possession for a few weeks, there is the option of a one-time rate drop. So, if mortgage rates were to drop again, the buyer can take advantage of the lower rate even if you were qualified when rates were higher.
It’s also a great time to review your current mortgage. Maybe your rate is so high that it’s worth the penalty to get into today’s rates and take advantage of a lower overall interest payment. So, if your mortgage rate seems high, if your mortgage is up for renewal soon, or you would like to take some equity out of your home to pay off other debts, it’s a great time to lock that mortgage rate in.
Any questions? Contact us. We are here for you.