Interest hike and best variable mortgage rate
Because of the Bank of Canada increasing its benchmark interest rate from 0.5% to 0.75% it can be anticipated that the cost of financing will also rise. This could lead to more borrowers seeking advice regarding the best variable mortgage rate. It is also an aspect that can be related to general mortgages, home equity lines of credit and various other loan sources linked to the big bank prime rates. The fact of interest rates still remaining comparatively low, the best variable mortgage rate included, is supported by other influences. Economic growth is seen to expand within different industries and regions, resulting in greater sustainability, which is apparent in the goods and services sectors.
Among the financial issues being raised in general, is the observation that financing is not only now more expensive but also becoming increasingly difficult to obtain. It is not only in respect of those unable to qualify for mortgages based on their incomes but for every citizen! Regarding the effect the Bank of Canada’s decision will have on negotiating the best variable mortgage rate will no doubt be considered and revealed by financial institutions and mortgage brokers.
Variable and Financial influences
It is of concern that many Canadians are struggling with servicing their debt burden. This is a situation in which obtaining the best variable mortgage rate can prove an advantage. It’s a decision that needs careful consideration and the expert advice of qualified brokers, such as the Mortgage Guys. This type of mortgage is usually for a five-year term, due mainly to the fact of variable rates historically costing borrowers less interest. However, it should be kept in mind that long-term rates have seen a decrease for over the past 30 years.
Other influences that attract buyers to negotiating the best variable mortgage rate is the inherent flexibility of early refinancing without the imposition of a large penalty. Another influencing factor towards seeking expert advice and help is that obtaining the best variable mortgage rate is a challenge to obtain approval, especially with regard to those with an above-average debt record. This is due to the majority of lenders requiring proof of affordability from variable-rate borrowers.
With the present rate hike by the Bank of Canada, it could be advantageous for you to contact a mortgage broker, especially if you have less than 20-percent benchmark equity. In this instance, a mortgage specialist can negotiate the best variable mortgage rate on your behalf. This is a valuable service that can help you achieve your homeownership ambition!