Mortgage Rates Fall To Record Lows
Mortgage rates continue to fall and have now reached new record lows. Five year fixed rates are as low as 1.73% for insured deals and 1.81% for uninsured deals. Variable rates are also under 2%. Last Wednesday the Bank of Canada made it clear that they intend to keep rates are low as necessary to help the Canadian economy recover from the impact of Covid19. There has not been a better time in decades to consider re-negotiating your mortgage. Although qualifying is not the easiest the opportunity to lock into a fantastic deal is worth the effort.
Mortgage rates are not the only thing on fire these days. The real estate market continues to accelerate with increased sales and higher prices but that being said this is primarily being experienced in the detached home market. Detached homes across lower mainland listed under $2million are selling fast and in many cases with multiple bidders. Greater Vancouver saw the second best July on record and August wasn’t much different. If you need to sell the timing is great. Price your home smartly and it will sell fast.
Not everything is so rosy. Certain market segments have not done so well. Condo re- sales are moderate and pre-sales are down significantly this year. This moderation has also pushed down rental rates and increased vacancies. This may be a temporary trend until we see the employment and our economy recover from the impact of the pandemic. Conditions can change quickly and I recommend to all my clients to review your financial well-being before these opportunities evaporate.
Need funds but the bank said no. Private first and second mortgages are easily available. You can access up to 85% of your home’s equity.