The federal government just announced that CMHC will now be run by OSFI, the Office of the Superintendent for Financial Services. What this means is that getting a mortgage will become more difficult, ‘across the board’.  Also because the banks will no longer be allowed to ‘insure’ their low risk mortgages, this will put new pressure on lending costs and likely lead them to charge higher mortgage rates. The Bank of Canada will now not have to increase their ‘floor’ wholesale lending rate which would cause the loonie to soar and in turn would hurt the economy.

Experts suggest the effect of tougher mortgage lending and higher rates will definitely slow down the ‘overheated’ housing market, so if you are thinking of buying or selling, do it soon, very soon.

For those of you who are worried about possible job layoff/loss, and those who have high interest consumer debt, act now.  Be proactive, don’t wait until it is too late. Take yourself to safety.

If your mortgage is renewing this year, you may want to take advantage of today’s ultra low rates. How would you like to lock into our incredible (all time low) 10 year fixed mortgage rate of 3.99% (the equivalent bank rate is 6.75%). No one ever foresaw long term money this cheap. And hear this. There is no IRD or Interest Rate Differential beyond 5 year terms and so no IRD on a 10 year term mortgage, after 5 years. What an incredible bonus if you sell your house between 5 and 10 years.  You can also port (take it with you) or have it assumed when you sell (it will be a very attractive rate to buyers). Talk about a ‘Win/Win’ scenario.

Inevitably rates have nowhere to go but up. It’s only a matter of time. With the world in financial turmoil the future is uncertain. With these circumstances, ‘Going Long’ now makes more sense than before.

Call us for a mortgage checkup and to discuss the advantages of ‘Going Long’ today. You will be so glad you did!