Mortgage Market Update August 2011

Canadian Mortgage Market update for August 2011 - Mortgage Rob, your mortgage broker for Cloverdale, Surrey, Langley and the Fraser Valley, providing mortgage market information for August 2011.

It's quite amazing what a few weeks will do to the interest rate markets in Canada. Over the last few weeks we've had several announcements regarding the Bank of Canada and their strategies going forward, as well as a lot of information and a lot of talk and speculation about the US and their current financial status. We've seen their bond rating downgraded by Standard and Poor's. We've heard of further problems with some of the European countries such as Greece, Portugal...
All of that information basically has kind of led to good news for Canada. We've started to realize that a lot of what the media is saying is hype. Interest rates will increase but we've come to really prove that the increases won't be anytime soon.
Whether you're a variable rate mortgage customer or you prefer fixed rates, it's good news in both cases. Variable rate mortgages, the Bank of Canada has come out and said that they don't expect to have any increases because of the state of the US and the announcements that the Federal Reserve has made confirming that we probably won't see any increases for 18 to 24 months. That takes us basically right into 2013.
Your variable rate mortgage strategy if you're currently on a variable rate mortgage, hey, stick with it. But it might be time to look at increasing your payments. Something that you can do in order to plan for future increases. But all in all, that is just going to save you a lot of money on a lot of interest expenses over the next 18 months or 2 years, if you were to start increasing those payments now.
On fixed rate front, we've come full circle. It's official now that we are back to the historic bottom of the interest rate cycle. We're seeing 5 year rates at less than 3.5% now. Whatever your choice is, whether it's fixed or variable, either strategy you have good options available in the marketplace today.
Plus, on top of that, the last four or five weeks have been by far the busiest summer that I have had over the last few years. I really think that the sense is that a lot of Canadians now are a little bit more comfortable with our situation and our economy in Canada. We are prepared to get out there and either purchase an investment property, purchase a home, or just make some changes to their existing mortgage structure and take advantage of these low rates.
It's pretty good news that our low rates are going to be here to stay for at least a year and a half if not longer. If you haven't done so already, I highly recommend getting your mortgage reviewed. There are some tremendous options available in the mortgage market right now. In most cases, there's a way that you can probably save some money and really get ahead on that mortgage. Make some really good progress over it over the next year and a half.
I'd be happy to help you review your mortgage. It doesn't take more than 15 minutes or so to go through the information and crunch some numbers for you. If you'd like to get in touch with me, I'd be happy to help. You can reach me at 778 686 8326, or always by email at Rob@MortgageRob.ca. Hope you have a great month and the rest of the summer treats you very, very well. Get the kids off to school in September. I'll talk to you next month. Bye for now.

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