Date: July 5, 2024
Category: Blogs,Mortgage Tips & Advice
Are variable rate mortgages attractive again? π€π‘Β
Over the last few weeks, we’ve seen many borrowers starting to lean toward variable-rate mortgages again in anticipation of lower rates in the future. ππ‘
So what’s the strategy with this and does it work for you? π€·ββοΈπ€·ββοΈ
As of today, the five-year fixed rate is hovering around the 4.99% range, the three-year term is hovering around the 5.14% range, and the variable rates are hovering around prime – .90%. ππ
Throughout 2024 and into 2025, as mortgages come due, we as Canadians will be trying everything to mastermind our way to the best options at renewal time. π§ π¨π¦ This leads us to explore some of the options we’ve seen in the last few months. πποΈ
What are other Canadians doing at renewal? π¨π¦
Why are they choosing these options? β
1. Auto-renewing with the current lender π€π¦
2. Refinancing to add debt, or extend amortization and reduce monthly payment πΈπ
3. Taking an out-of-the-box approach that will allow them to pay off the current mortgage faster ππ‘
4. Switching lenders to find a lower rate (not necessarily a lower payment) ππ¦
This month, we explore each of the above options weekly with more details. π π
Today we talk about auto-renewing with the current lender π€π¦
Why would someone auto-renew their mortgage? π€π‘
– If there has been a job loss in your household, this can significantly impact qualifying for a new mortgage and in this case, auto-renewing may be the best option which eliminates requalifying. π π
– This is not always your best rate option; however, it’s important to note that you do have options. ππ¬
Please connect with us before your renewal and we will coach you through the auto-renewal process. ππ
Stay tuned weekly as we discuss the other options. ποΈπ
Click here to book a time to connect and review your questions.
Talk soon,
Ana
Mortgages can be complicated; we are here to help you make “cents” of it.
We focus on Mortgage Solutions, Period!
To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca