Mortgage brokers are once again scrambling to submit deals before midnight. Fixed mortgage rates will jump tomorrow for the 4th time in 4 weeks.
Effective Thursday, the posted 5-year fixed rate at Canada’s major banks will hit 7.44%. That’s a pop of 0.85% since Mid-may.
What’s behind all this? Ask the bond market. Rates there have soared in the past month. The catalyst is the Bank of Canada–which appears poised to hike its key lending rate next month for the first time in over a year.
With all these rate hikes it makes sense to plan early. The Globe’s Rob Carrick advises mortgage hunters to “get a rate guarantee immediately.”
Remember, a rate guarantee is not necessarily an obligation. If rates go back do you can usually adjust your rate lower (at least once).
If you’re up for renewal, whatever you do, don’t wait for your lender to send their form renewal letter. Call a professional mortgage planner to shop the best current deals way ahead of time.
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