What to Do About These Mortgage Interest Rate Increases
Are you tired of hearing about mortgage interest rate increases? Us too. In fact, for the first time since we’ve been publishing real estate news updates we left out of the most recent Bank of Canada announcement regarding yet another hike in the prime rate. Like we said – we’re over it.
That being said, mortgage interest rate increases certainly impact your decision to get a home loan. And as the BC Southern Interior’s go-to mortgage brokerage we know that you need some advice – and fast! Is there anything to be done as someone who wants to enter the market early in 2023? Most certainly.
What Prospective Homeowners Need to Do to Respond to the Recent Bombardment of Bank of Canada Interest Rate Increases
I. Jump On Price-Drops
Just when it seemed that Okanagan buyers had enough of mortgage interest rate increases, the Penticton Herald called Carloni Mortgage Brokers for some perspective:
“There are tremendous opportunities now compared to a year ago. The increased mortgage costs have basically been offset with the decline in prices,” said Rene Carloni in an email this week. “Personally, I’d rather pay less for a home today at a higher interest rate compared to what we had a year ago, with low rates and higher prices.”Penticton Herald | December 2022
Our very own Rene Carloni nailed it in his astute assessment of the market. Higher rates have driven down demand, which has had the effect of lowering home prices in the region. This helps ease the burden of higher rates. Regardless,, it is important for prospective buyers to take immediate action. As per recent Penticton real estate news, the benchmark prices have fallen, but they will not remain that way forever:
“ ‘Activity has picked up significantly since the new year. The activity will take some time to show up in the sales numbers but I think you’ll see higher sales numbers in the coming months versus the last few,’ added Carloni.”Penticton Herald | February 2023
As sales increase, supply will tighten, and prices will rise. If you’re wondering what to do about mortgage interest rate increases, you must understand the importance of knowing when to strike. That time is today, before Q2 of 2023 gets underway. Call 250.493.9111 for a FREE consultation on the matter.
II. Broker for Better Rates
The Bank of Canada has stated that the mortgage interest rate increases of last year may have reached its peak. Do you trust this to be the case? Does it matter? The answer to the latter, is that it doesn’t matter as much when you work with a mortgage broker.
You see, even if the Bank of Canada pauses mortgage interest rate increases when they make their next announcement on March 8, variable and fixed rates may not budge. It will take time for the dust of the last annum to settle. Does this mean you have to wait even longer to enjoy lower rates? As we’ve been hinting, you don’t have to wait when you partner with Carloni Mortgage Brokers. Our firm has longstanding ties to banks along with alternative private lenders. As a result, we enjoy “bulk discount” rates that get passed on to our clients – you! You will enjoy access to lower than advertised interest rates for home loans, wether we connect you to bank lenders or private financiers. Of course, you want to (and should) learn more about how this all works. All that you need to do is call us at 250.493.9111 for a FREE and friendly consultation.