On July 12, 2017, the central bank raised the benchmark interest rate for the first time in seven years from 0.5% to 0.75%.
The Bank of Canada is expected to increase rates a second time later this year.
What does this mean to you?
The rate increase reflects the confidence in our economy. A quarter-point increase is not going to tank the housing market.
If you are thinking of making a move, I recommend that you get into the market now before rates go up again. Get pre-approved and lock in that low mortgage rate now. Pre-approvals typically last 90 days.
For sellers, an increase in interest rates means an increase in buyer activity. Buyers will rush into the market to take advantage of rates before they buy again. This is especially true in the townhouse and condo market. Check with your lender for pre-payment penalties and see if they will allow you to move your current mortgage to a new property.
If you have any other questions about interest rates or the local real estate market, just give me a call or send me an email. I would be happy to help you!