You may have been reading headlines that interest rates and mortgage rates are rising. If you are a mortgage-holder who is concerned about increasing rates here are a couple of options to consider:
If you have a variable rate mortgage: This mortgage fluctuates based on the prime rate so you may want to consider locking your mortgage into a fixed rate while rates are still low. This would allow you to know what your rate and payment will be for the length of term you choose. In many situations, our variable rate products allow you to lock into a fixed rate without any penalty at all. Check with your mortgage provider on what the penalty fee may be if you do make a switch.
If you have a fixed rate mortgage: Now may be the time to consider renewing. Depending on where you are in your term, you may be able to renew into a new term at the same or a lower rate, further assuring your rate and payment. If you’re renewing from a higher rate into a lower rate, a penalty could apply. Sometimes it may be worth paying a penalty if the new rate is lower, especially if you’re concerned about rates rising. We can help crunch the numbers for those situations.
If you have an open mortgage or hold a mortgage line of credit: If you are not planning to pay the balance significantly down in the near future then locking into a fixed term could save you interest should rates rise.
Curious about how much your payments could rise? Sometimes it helps to know what the impact would be on your monthly budget should a rate increase occur. You can click here to use our mortgage calculator (payment tab) to plug in your own mortgage and adjust the interest rates to see how your payments could rise.
Still curious? Come talk to us for some options relating to your specific situation.