In today's volatile market a common question from clients and referral sources alike is what their clients should be doing in todays market with their mortgage. We break down the different mortgages you may have and what industry professionals are recommenting.
Existing Variable Rate Mortgage Borrowers:
-Stay the course
-Lender has dropped the rate in most cases to 2.45% and you likely have a discount off of that
-If you are considering a fixed mortgage its recommended you stay the course and enjoy your newfound savings for awhile and give fixed rates some time to settle.
Existing Fixed-Rate Mortgage Borrowers:
-Fixed rates are now moving higher
-Stay the course with existing fixed rate and allow some time for the rates to arguably come back down..
-Rate competition may may intensify in delayed spring market this summer
New/Renewing Mortgage Borrower;
-Asses your capital requirements.
-Ensure you are applying for the right amount of capital
-Variable rates typically have a lower penalty than a fixed and can be converted to a fixed so we like the flexibility in taking now and converting to a low rate fixed or deep discounted variable, if/when that occurs.
-Flexibility in a market like this is key
Stretch Mortgage Borrowers:
-Understand your capital requirements
-Cashflow is key
-Consider refinance to improve cash flow
-Be proactive in capital needs
-The government has implemented programs to support Canadian's in financial stress along with entrepreneurs. Now is a great time to consider a combination of different ways one can access capital be it mortgage related or not. The mortgage aspect may be one part of a bigger picture.
For more information on how we can support you during these unique times be it non mortgage related or mortgage related please reach out. We have information on government programs available to Canadians and can support Mortgages for Purchase, Renewal, Refinance and have access to unsecured credit, CHIP Reverse Mortgage and Private Capital.
Sincerely,
Scott
416-436-1135