The next Bank of Canada rate increase is predicted to occur on July 13th. Most economists indicate a .75% increase. Others predict a further .50 increase in September of 2022.
What this means for current mortgage holders and potential buyers:
- If you currently have a variable rate mortgage, now is the time to review if this option is still best suited for you
- If you are shopping for a property and currently have a 120-day preapproval rate hold (on a fixed or variable term), the ideal opportunity to buy is before your rate expires
- If you are seriously considering buying a property in 2022, mixed economic news is causing a lull in certain areas of the real estate market, triggering a buyer’s market, at least for the summer of 2022.
- A buyer’s market combined with a low locked-in preapproval rate is the perfect storm for saving money
Reviewing your options with a professional who navigates the interest rate waters daily is an excellent way to ensure you remain on the right path. Doing so can allow you the opportunity to put money back in your pocket.