Bond yields have been steadily decreasing for a while, and finally more lenders are moving their 5-year fixed rate mortgages down, as well. Mortgage interest rates largely depend on bond yields (returns on investing in bonds), and when bond yields drop, interest rates on fixed term mortgages do, as well.
This is great news for those looking to get a jump start on the spring market with mortgage pre-approvals, since many predict that this down draft of interest rates might not last that long. Getting your pre-approval now protects you if interest rates rise, which could save you thousands or even allow you to qualify for a larger mortgage.
Also, if you happen to be self-employed or know someone who is, CMHC recently made changes that benefit self-employed individuals. Some lenders have started implementing those changes, which make it easier to qualify for a new mortgage and at renewal time. In the past few years, many self-employed Canadians simply had no option but to stay with their existing lender. That has changed, and more solutions are available.
The mortgage environment constantly changes, and as your personal mortgage professionals, we are committed to staying up to date to give you the right advice. If you are renewing your mortgage or getting ready to buy your first or second home, it just makes sense to deal with a mortgage professional.
Contact us today.