CMHC quietly made changes to one of their programs that will likely affect all fixed rates going forward. With lenders having to find new avenues of funding their mortgages that will be more expensive, borrowers can expect those costs (approx. .20% -.65%) to be passed on directly to the end consumer, the borrower of a fixed rate mortgage. While economically we don’t have anything pushing fixed rates higher presently, we can thank our own Government for making increases happen regardless.
It’s the perfect time for those in variable rates to ensure we have a fixed rate (the 10 year at 3.99% presently is probably your best bet!) held in your name so we can watch over the next 4 months what happens and make a decision then.
For more detail on the changes see the article from Canadian Mortgage Trends:
Call our office at 604.536.8208 or toll free 1.888.536.8208
Michael Anthony Lloyd