The attached video is a chat I had a few weeks back with Elizabeth Wilson, Editor of REW.ca. We covered the basics about what’s been pushing up rates lately, the fixed vs. variable decision and why rate holds are so important.
On that last point, it’s worth noting that pre-approval/rate holds are often 10+ basis points more expensive than rates on “live deals” (i.e., applications with firm closing dates). But that’s no reason not to get a pre-approval. If there’s a chance you’ll close a mortgage within 180 days, you always need to protect yourself from adverse rate moves. Furthermore, pre-approvals never bind you to a lender, so it’s like a free option.
Rob McLister, CMT