Should You Consider a Short Term Fixed Rate Mortgage?
The Bank of Canada rolled back on their earlier indication that they would hold the prime rate steady through rest of the year by raising it on June 7/2023. If they don’t do it again on their July 12 announcement (dare they?) the very best buyers can hope for is that the prime rate sticks at 4.75%.
If you recall that variable rates are tied to the prime rate, and fixed rates are tethered to the Bank of Canada’s quantitative tightening policy, you’ll understand that both rates are about the highest they’ve been in more than a decade. Consequently, buyers all over the country are wondering what to do, Okanagan Valley prospects included.
Traditionally many buyers would take a wait-and-see approach. That’s no longer working for individuals, young couples, and family households. BC buyers are coming to terms with the fact that the real estate market won’t experience any dramatic shifts over the next year. Moreover, delaying homeownership is simply not an option any longer because the longer the wait the further away you get from building real wealth.
What should buyers (yourself included) do? One option that we think Okanagan Valley home hunters should explore, is a short term fixed mortgage. Below is a straightforward breakdown of why this may be the perfect solution for you, concluding with a clear call-to-action.