Canada cuts interest rate by ½ a point, bond rates keep falling and Mortgages keep getting cheaper!!
It has been a rough couple of weeks in the stock market, but this is great news for the real estate industry. As bond rates keep dropping, we are seeing ridiculously cheap mortgage rates.
Right now rates are coming on-line as low as 2.39!!
This is insanely cheap, and I fully expect the other lenders to follow suit in the upcoming weeks.
How can you benefit from these changes?
Two ways:
- When mortgage rates drop significantly its a good time to renew your mortgage, or think about refinancing at a lower-rate (depending on what your current rate is).
- Come April 6th, the new stress-test for insured mortgages is going to be based on the current insured mortgage rates. As this mortgage rate drops, new buyers will qualify for a much larger loan.
Based on the hypothetical rate of 2.39%, households that earning $80,000 will qualify for approximately $30,000 more house!
