What a year! There was a heck of a lot going on in 2020, and it wasn’t all bad. Mortgage interest rates are the lowest in history!!
Lets compare some numbers
We’ve seen the Canadian dollar fall and rise again over the past year due to economic and pandemic conditions.
This combined with the state of the economy in Canada and around the world influenced mortgage interest rates.
We know when an economy is strong mortgage interest rates are higher as companies looking to grow their business look to investors. However, with a weaker economy we see investors offering lower rates as the demand for borrowing is lower.
Over the past year we have seen the fixed interest rate drop 1%, which makes a huge difference in a mortgage payment.
If you are considering a home purchase in the next little while, it may be in your best interest to complete a pre-approval application and have a rate secured for 120 days.
Also, if you currently have a mortgage with a high interest rate, you may want to investigate the option of an early renewal. Be advised you will have a penalty for paying out your existing mortgage, however the long term savings may be worth it.
Give us a call today, we’ll help you investigate the possibilities.