Bond yields have been steadily going down for a while now and finally more and more lenders are moving their 5 year fixed rate mortgages down as well. Simply stated, mortgage interest rates largely depend on bond yields (returns on investing in bonds) and when bond yields go down, interest rates on fixed term mortgages go down as well.
This is great news for those looking to get a jump start on the spring market with mortgage pre-approvals, since many predict that this down draft of interest rates might not last that long. Getting your pre-approval now protects you in the event interest rates rise, which could save you thousands or even allow you to qualify for a larger mortgage. Let me show you the difference lower interest rates mean to you.
Also, if you happen to be self-employed or know someone who is, the Canadian Mortgage and Housing Corporation (CMHC) recently made changes that benefit self-employed individuals. Some lenders have now started to implement those changes which make it easier to get qualified for a new mortgage and at renewal time. In the past few years, many self-employed Canadians simply had no option but to stay with their existing lender. That has now changed, and more solutions are available.
The mortgage environment is constantly changing and as your personal mortgage professional it is my commitment to stay up to date to give you the right advice. If you are renewing your mortgage or getting ready to buy your first or second home, it just makes sense to deal with a mortgage professional.
Let’s talk, call or email me.
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