Looking for a market update?  You’re not the only one! The real estate market is a bit more relaxed than it has been in recent months, allowing people to make decisions on buying and selling under less pressure.

You are probably hearing about drastic price drops in the media, which instills fear in many homeowners and buyers.  Do not get caught up in the media! The best thing to do is to contact us directly.

We have another rate announcement coming from the Bank of Canada on June 1st. It’s expected that we will see a 0.50% increase to the overnight target rate.  This means the current prime rate will be 3.70%.  With this, many people are in fear of what to do with their current variable rate mortgage.  Our advice…ride the wave! Today, variable rates are still far less than fixed rates.

Other variable rate mortgage benefits include:

• Variable rates are currently 1.5-2.0% lower than fixed rates right now
• If the prime rate changes, it will go up at a slower pace than  jumping to a fixed rate
• Lower rates allow you to pay thousands less in interest
• Variable rates have the lowest penalty calculation if you need to make changes during your term

In conclusion of this market update, fixed interest rates are currently in the mid to high 4.0%, with variable rates in the range of 2.70%.  The anticipated increase on June 1st brings the potential of the variable rate increasing to the low 3% range. Remember, this is still much lower than today’s five-year fixed rates.

If you are considering purchasing a property or want to refinance to take advantage of equity, contact us right away. We will get the process started so you will not be impacted by further increasing rates. And as always, we’re here if you have any questions!