May 24, 2013
How Should You Prepare for the Eventual Rise of Interest Rates
A recent article in the Globe & Mail titled "Homeowners: Don't get caught flat footed when interest rates rise" is cautioning people to be prepared for the eventual rise in interest rates. I have included the link to the article below as it has some good points. If you're currently in a low rate mortgage term i.e. less than 4% or if you're thinking of purchasing a home in the near future talk to your mortgage advisor to discuss some ideas of preparing for this. Things like prepayment options to lower your mortgage balance by the end of the term or a stress test. That would be looking to see what your mortgage payment would be at 5 or 5.5% at your estimated outstanding balance at the end of your current term.