FYI: Fixed rates are on the move upwards at the banks

There has been very little attention drawn to the record low mortgage fixed rates in the recent few months. This summer, the fixed rates surpassed the record lows of last year, when the media was all over it then and, some say, spurred a buying frenzy in the housing market. These days of record low rates in Canada may be coming to an end now.

A couple of key lending institutions (ie. banks) have indicated that their 5 year fixed rates will increase as of midnight Nov 17, 2010. Although, there will likely be a few lenders straggling behind and still with fairly competitive rates available for a few days afterwards.

How does this impact you?
An increase in rate means a decrease in the maximum amount of mortgage that you qualify for. If you are looking to get max mortgage to go along with your available down payment to buy a place, you should get a pre-approval asap in order to hold the rate for up to 120 days.

Or if you have been waiting for the rates to hit rock bottom before locking in from a variable rate mortgage into a fixed rate, now may be the time to consider it.

For more information, feel free to send me a PM.