Mortgage Minute: Your Questions Answered

Date Posted: October 5, 2021

Q: The variable mortgage has served us well, nut we are a bit worried that with inflation numbers high,  mortgage rates are likely to increase and we are wondering when should be lock in?

A: Since bond markets have gone up in the past week a little over a quarter percentage point. W have already seen some lenders start to increase their fixed rates. It would b e best to start looking into it within the next day of two. It is the best idea to do it sooner rather than later.

Q: Our mortgage is up for renewal next spring, can we start the renewal process now or do we have to wait for our bank to connect with us?

A: With rates going up, there is nothing wrong with starting the process now. Most lenders can lock in a rate for up to four months. If you lock in a rate today, that will bring you until the end of 2022. Even if your mortgage matures in the spring, it at least gives you a guaranteed rate in case rates go up, which they are expected to do.

Q: We purchased a home from a builder but it won’t be ready until Fall 2022. Can or should we lock in a mortgage rate now, or wait until closer to the house is ready?

A: It is a good idea to lock in a rate now if you can. With new builds, some mortgage brokers and lenders have access to a one year rate hold but rates won’t necessarily be as low as you are seeing. It is still better though to lock in a rate now than to wait for when the property is ready when rates may be much higher.

For more information, reach out to a Mortgage Broker today!

To watch the full CTV Morning Live segment with Frank Napolitano; click here.