If you haven’t heard as of yet, the Bank of Canada will be making its first interest rate announcement of 2022 on January 26. It is largely anticipated that the upcoming announcement will see the prime rate increase by 25 basis points to 0.5%. This is expected to be one of several rate increases by the Bank of Canada over the course of 2022.
This rate change will have an impact on consumers with an existing variable rate mortgage, and more importantly, buyers who are currently looking for homes. In a real estate market where we are already seeing record prices across the GTA, and buyers who are stretched to their absolute maximum budgets, a rate increase can tip things over the scale and ultimately push a lot of first time home buyers who have their sights set on a certain home type having to shift into a condo or something smaller because they simply can no longer afford the monthly expenses. Yes, even with a minor 0.25% rate increase by the Bank of Canada, many existing homeowners and soon-to-be homeowners will feel the impact of that change.
While a rate increase is not something most consumers would welcome, you can get ahead of the curve, and save well over $5,000 by locking in your mortgage pre-approval rates for 90 days OR running to the bank today to get a pre-approval ASAP! The video below discusses this in more detail and shows you the amount you can save each year on interest, simply by locking in your rates before January 26th.
Honestly, in what situation would anyone turn down the ability to make over $5,000 in what amounts to maybe 2-3 hours of total work? Nobody would! So make sure if you are in the market of buying a home right now, that you get your mortgage pre-approval rates locked in before The Bank of Canada makes their rate announcement on January 26, 2022. We hope you enjoy the video and if you would like to connect with one of our brokers, you can contact us directly and we would be more than happy to help expedite your pre-approval documents ahead of the Bank of Canada’s upcoming announcement.