We’re halfway through the summer months and mortgages may not be on the top of your mind these days, but there has been some news.
Bank of Canada governor, Stephen Poloz, recently announced an increase in the bank’s benchmark interest rate from 1.25% to 1.5%. This increase affects the cost of borrowing for Canadians, especially those with variable rate mortgages, as most lenders have increased their prime lending rate and variable rate mortgages are tied to movement in the bank’s prime rate. Of course, on the surface, this doesn’t sound like good news, but it reflects a strong and growing economy. The Bank of Canada also expects the “Trump tariffs” to have little effect on our economy’s overall growth.
The mortgage market seems to be forever changing and evolving. Not only do market conditions change but so do the needs of Canadians and the mortgage products built to satisfy those needs. CMHC recently announced some changes that will make it easier for self-employed individuals to qualify for a mortgage. There are also many other product enhancements from non-traditional lenders providing new options for those who don’t fit traditional lending guidelines and may have had challenges in the past in getting a mortgage.
As mortgage professionals, we always have mortgages on our minds, and we’re here to help you find the best mortgage solution for you.
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