Monday, June 03, 2013

Mortgage rates to rise - Peter Kinch

Peter Kinch, one of Canada's leading mortgage lenders, thinks that some fixed mortgage rates are on the rise.

"Say what?  How can rates be rising when the media keeps telling us that there won't be a change in rates until 2014?

Well the media is talking about the Bank of Canada Prime Lending Rate and yes, there is no change there - But that doesn't mean that there won't be a change in the 5 year fixed rates.

Fixed rates are governed by the BOND YIELDS - and they have jumped up significantly.  As the bond yield goes up - so too does the long term fixed rate.

Translation:  Look for a jump in the 5, 7 and 10 year rates over the next 72 hours"
Watch his video blog HERE

What does this mean for you? Lock in to one of these products now with your lender if you have a property in your sights. It's such a simple step to avoid decreased cashflow. We are locking into 10 year rates now on select properties.

No comments: