Robert McLister·
General
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Keeping Track of Variable Rates

Mark Pavilons from the Caledon Citizen says, “I have yet to hear a mortgage specialist call and say ‘Mr. Pavilons, the Bank of Canada is likely to increase the rate by a quarter point next week, so in your best interest, I think we should lock in your mortgage now.'”

If your mortgage agent doesn’t do that, find a new one……..or read Canadian Mortgage Trends.  

Robert McLister
Robert McLister is one of Canada’s best-known mortgage experts, a mortgage columnist for The Globe and Mail, and Founder of mortgage broker intelliMortgage Inc., RateSpy.com, a website comparing Canada's best mortgage rates and Mortgage Editor of RATESDOTCA.
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2 Comments

  1. If a mortgage agent calls me 1 week before a rate update then I’ve already missed the window of opportunity to lock in at a low rate since banks often update their long term rates almost a month before a potential increase is announced.
    However, I do agree that it would be helpful if an agent called when there are strong indicators that rates will increase over a certain period so that I can make an informed choice on whether to lock in or not before the changes take place.

    Reply

  2. Hi Patrick,
    You’re absolutely right. The last rate hike was case in point. Bond rates (which guide long-term lending rates) started climbing two months ahead of the Bank of Canada’s last increase.
    If you want to lock in before the banks act you have to keep an eye on economic indicators, bonds, and B of C’ reports. To simplify things we refer our variable clients to this blog for “expert” commentary/forecasts well ahead of B of C moves. That gives people some lead-time when deciding to lock in or not.
    Obviously, even the experts get it wrong sometimes but an informed opinion is better than none.
    Have a wonderful day,
    Melanie

    Reply

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