Open House - The Real Estate & Mortgage Show: March 14th, 2020
Bank of Canada drops interest rate another 50 basis points
The Bank of Canada just dropped their overnight lending rate another 50 basis points to 0.75% from 1.25%. However, with the volatility in the Bond Markets this past week some lenders have started to increase their interest rates. The question now for many consumers is whether or not to choose a fixed rate term or variable rate mortgage this upcoming spring home buying season.
In addition to the swings in mortgage rates and the effects of Covid 19 on the global economy the Department of Finance has suspended the launch of changes to the Mortgage Qualifying Rate that were scheduled for April 6th, 2020 – until further notice.
Even with all this uncertainty the spring market is continuing to see many instances of ‘multiple offer’ situations for Buyers and this is why working with a trusted Realtor and Mortgage Broker will help you navigate this process. Taking the time to work with a Mortgage Broker to ensure you are well positioned with any offers you may make on a prospective home will better assist you in this ‘multiple offer’ season the Ottawa market is experiencing. In addition, a Mortgage Broker will also highlight the pros and cons of choosing a fixed rate mortgage or a variable rate mortgage.
By knowing your market and working with a Mortgage Broker you can well position your home / purchase in todays every changing real estate market.