Real Estate Blog - Hints Of Rising Interest Rates - Floating Rate VS Fixed Rate Mortgages

Home : Blogs : Kathy Clulow ASP® SRES® : Uxbridge, Ontario Information and Real Estate Online

Hints Of Rising Interest Rates - Floating Rate VS Fixed Rate Mortgages

Hints Of Rising Interest rates

Is now the best time to lock in your mortgage? Before jumping in with both feet one should look at, and compare, the effect an increase will have on your comfort level or your ability to pay. Locking in now will ensure your rate for a given period of time but it will be higher than your current floating rate resulting in an immediate increase in your mortgage payments.

While mortgage rates are at historicaly low levels two TD economists feel that Mortgage rates may soon rise if the real estate market does not cool off. August home sales were up more than 18% across Canada over last year and avergae home prices continued to rise. Continued surging home sales and rising prices may force the Bank to rethink its pledge to keep its interest rates at .025% till mid 2010. Should this happen we may soon see interest rates rise.

National Post ---The possibility exists that the Bank of Canada may have to break its conditional pledge on interest rates should the housing market continue its red-hot performance, economists at Toronto-Dominion Bank said Tuesday.

Read Paul Vieira's full article "Hot housing market could trigger rate hikes: TD" in the National Post (October 6, 2009).

For Homes In
The Communities of
Uxbridge,Port Perry/Scugog
Whitchurch Stouffville, Balantrae,
Georgina and Brock.

Just Give Me A Call

Check Out The Listings
On My Listing Web Site
Let Me Find You A Home
To learn more about what housing options Uxbridge
has to offer; be it condominium or detached homes,
in town or rural communities,
country homes, estates or farms just give me a call or

THE BEST WAY TO CONTACT ME

I will respond ASAP
However I do not answer when driving
or when with Clients

Posted by Kathy Clulow ASP® SRES® on 10/06/2009 01:45 PM

Comments (10)

Fixed Rate vs Floating Rate in the Mortgage / Finance Channel

mortgage options, kathy clulow, remax scugog realty ltd, uxbridge

Originally posted at: Uxbridge Information & Events: Hints Of Rising Interest Rates - Floating Rate VS Fixed Rate Mortgages

This post has been included in Ontario Information Durham Municipality, ON Information Uxbridge, ON Information
Post is included in group: Ontario Real Estate and Information
Post is included in group: Localism Success and Accountability Group

10 Comments on Hints Of Rising Interest Rates - Floating Rate VS Fixed Rate Mortgages

OCT

I've had a variable rate for a long, long time, and I also had a great rate on my line of credit, but I've already received a letter from the Bank, telling me that the interest rates on the line of credit will be going up, effective immediately. They raised it by a whole percentage point. I hope the news isn't quite that bad for the mortgage rate increase.

The way that the Feds keep manipulating things... it is really hard to know what is coming!

Australia raised their rates today. The first Country to do so in a year. Interest rates will be the next big topic and concern. I like your "text me", button!!!

Hi ~ I think I heard that the FED raised the rates today? I was working all day and I have not verified the rate change yet???

OCT

Kathy,

Good post. Interest rates only have one way to go.

Brian

Sylvie - we have been enjoying some of the lowest rates in recent history ... I remember 18 and 20% mortgage rates so even if they go up 1 or 2 percent it is still like free money to me. ... on the other side of the coin any one who is retired will appreciate any rise in rates if the have money in short term deposits.

Judi - exactly but I believe the signs are there for the short term

Jane - I noticed that it was one of the things mentioned in the article. ... the button leads to a text me widget on my web site

Monique - it likely will ... the following quote is from an article By Mark Felsenthal

"Hoenig cautioned that benchmark interest rates, which are now near zero, would be accommodative even at 1 percent or 2 percent"

Brian - I agree but from my perspective it is still like free money given the history of rates in Canada over the last 20 or 30 years ... However if borrowing for a purchase today you need to think about the possibility of rate increases and how it will affect your ability to pay at some future time when you have to renew your finances.

This blog does not allow anonymous comments