The TSX has been on a bit of a decline in recent days. While most people who hold stocks aren’t thrilled to see their investments decrease in value there’s a silver lining for people looking to buy homes: Normally a dip in the Stock market translates into lower fixed mortgage rates.
Fixed mortgage rates are set based off the bond yield for a similar term mortgage-backed security. As people jump out of the stock market and into the bond market the increased demand for bonds drives their interest rates down (and their price up). In the last week these rates (yields) have decreased by about 0.25%, which means that there is room for the banks to lower fixed mortgage rates. Expect a change in rates in the next few days if the bond yields hold steady.
Variable rates are also attractive, so make sure you talk with one of us about all your options before you make a decision. For example, there’s a type of mortgage that allows you to split it up into 2 parts, where one chunk of your mortgage will have a fixed rate, and the other will have a variable rate. When making your decision it’s wise to talk with an expert, like some who has their AMP designation. Do you want to get advice from someone who spends most of their day processing car loans and setting up bank accounts or a mortgage expert? I certainly wouldn’t get heart surgery from a dentist.
Call us to see why more and more Canadians are using a mortgage broker to arrange their mortgage for them!
Cheers,
Chris
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Christopher Bisson
Mortgage Broker
The Mortgage Centre
1-866-838-4366 x1003
www.mortgageconcierge.ca
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Hi Andree,
ReplyDeleteIndeed - mortgage brokers play a vital role in the market. One of them being additional competition, which is good for consumers.
I recommend prospective consumers look for ratings and reviews on specific brokers before doing business with them. Services like Google and Yelp! aggregate customer feedback in a way that makes it easy to understand.
Cheers,
Chris