The Summer Sizzle
Mortgage rates have increased to a new summer high since the last rate increase by the Bank of Canada last month. Where do we go from here? The consensus is that the economy will begin a slow down and the rate increases will stop, and the interest rates will begin to fall. This is certainly possible but maybe the bigger question is when will this happen? The answer to that is even more difficult given our Country’s population boom. I may not be confident about the timing, but I’m confident that the Bank of Canada will be reluctant to drop rates too quickly. I believe the best we should expect to see is rates beginning to ease next Spring.
Many borrowers are being turned away from the banks. Don’t let the bank be your final answer. There are options available to help whether you are refinancing, renewing or just need money.
35 year amortizations can be offered. This helps keep your payment low especially if you were not prepared for the higher rates upon a renewal.
Private 2nd mortgages. This helps raise funds you may need and may allow you to maintain the low rate on your 1st Mortgage.
Private 1st mortgages. This can be a great short-term solution and rates will very depending on equity position.
Vendor Take-Back Mortgages. This may be an ideal for sellers looking to earn a steady stream of monthly income secured against the home you sold.
Private Mortgage Rate Sale:
Current blocks of funds from recent payouts looking for a new home:
$125,000 as low as 9.95% (up to 70% equity)
$300,000 as low as 11.95% (Up to 80% equity)
$150,000 as low as 13.95% (Up to 85% equity)
