Are you buying a home in Edmonton?

North American Economies Strong? Central Banks Continue to Nudge Rates Up

At the end of October the bank of Canada once again bumped-up its Key Interest Rate from 1.5% to 1.75%. It’s the fifth rate hike since July 2017.

Canada’s central bank kept its interest rate at record lows for several years to stimulate the economy following the slow down of 2008, but over the past 15 months the rate has increased by 1.25% as the economy has gathered steam and moved onto sounder footing.

Another part of their reason to move the rate higher is optimism about economic activity from the recently announced free trade deal with the United States and Mexico. Forecasters are expecting two more hikes between now and March – bringing the Bank of Canada Key rate to 2.25%.

Both here and in the U.S. economic growth and job gains have been “strong” and inflation, although it’s cooled a little remains near the 2% target.

With predictions of gradual rate increases still to come over the next two years, homeowners are likely examining mortgage options and opportunities.

Beyond The Rate- Look at the Whole Mortgage:

• When you’re in home buying or refinancing mode, a mortgage interest rate may be the first thing that attracts your attention, but there’s more to evaluating a mortgage. Look at a variety of options which include:
• prepayment privileges as well as prepayment penalties
• Cash Back as well as Cash back “claw backs”
• Restriction on refinancing
• Portability