In recent days I have been fielding a lot of calls and emails from clients about the sudden increase in fixed mortgage rates by some lenders. You can see the article here: (already posted to Haus FB page)
Before the panic sets in here are some facts I wanted to share with you.
- Interest rates are still at historical lows. A client renewing or applying for a new mortgage today is still likely going to get a lower rate than the mortgage they currently have
- If rates rise by .25% that equates to an increase of $13/month in a payment for every $100,000 mortgage. E.g. so if your client has a $400,000 mortgage that is $52/month
- 75% of Canadians are in fixed mortgage rates and 60% of them are in 5 year fixed terms so their rates remain the same until maturity
- Of the 70% of Canadian households who own their homes, 40% are mortgage free
- Only 13% of Canadians are carrying debt over $200,000 and 33% are debt free
- Mortgage delinquency rate in Canada is .027%, the lowest in the world.