If you picked up any newspaper and looked at the business section this week you will have noticed a lot of racket about mortgage interest rates rising. They have rocketed up to 4.49% from 3.79% last week.
Yesterday I attended a conference with chief economist for CIBC Benjamin Tal... he seems to think that we've seen the bottom of the interest rate market but that the current rise won't be sustained and rates will decrease again... the question is how low. Probably not as low as we've seen in the previous months.
Those presented with the opportunity of locking in their variable rate mortgages or refinancing to a lower rate face quite a conundrum. There is no clear answer at this point and I would advice that you carefully weigh your options. Considerations like:
- How long until your existing mortgage matures
- How steep you interest penalties will be to break your existing mortgage
- The interest saved by refinancing vs. the outstanding balance at the end of term
Today Roma Luciw of the Globe and Mail wrote an article addressing these concerns in Too Late To Refinance Your Mortgage?
If you would like to discuss your mortgage options and what you should do please call our Toronto Mortgage Office at 416.461.0204... speak to Chris at Tridac Mortgages.
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