Rising Interest Rates – What does it mean to you?

Published By: on September 14th, 2017 in Category Buyer Information, Nanaimo Real Estate
Published By: on September 14th, 2017 in Category Buyer Information, Nanaimo Real Estate

Written on September 14, 2017

Last week the Bank of Canada raised their interest rates, again, by a quarter of a percent. Financial experts are expecting one more similar hike before the end of 2017.

Why are they rising? Interest rates are rising because of Canada’s strong economy. Business is good. Low interest rates are meant to stimulate the economy and they have done their job.

The good news: Rising interest rates mean greater return on investment dollars. For those who already own their own home and are living off their investments, they will be breathing easier.

The bad news: We are still 3% below 2008 rates but with higher prices and higher stress tests. The stress test means that you must qualify for an interest rate that is 2% higher than what you will actually be paying. This is to protect consumers from getting caught paying more than they can afford if rates continue to rise.

If you are trying to get into the market, you need to lock in current rates before they rise again. Get a 3 month written approval from your lender. You’ll need to go through a full credit review in order to get a guaranteed rate. Then it’s time to shop!

Call us at Love Real Estate Group to help you find your new home. We’d love to help you through the process.  Call 778 557-5640

Testimonials

When I decided to sell my home in Cedar by the Sea last April, I asked Deirdre Love to list it. Within a week, I had offers and a purchaser. Next, Deirdre showed me a number of potential residences that could meet my needs. Within three weeks, I was very interested in buying a townhouse, made an offer and it was accepted. I was very impressed with Deirdre and her partner Marie’s manner in which they dealt with me. Their advice, professionalism and prompt service were especially appreciated. I would highly recommend these Ladies to others if they are seeking either to sell or buy a home. Thanks again Deirdre.

Al Cormon

I am a happy repeat client. Marie sold my two previous houses selling/buying and a lot purchase within a few years. She had lots of patience, listened to me and helped me figure out what do I want and what is the best for me. She was trying to find a real home for me and was not a just rush to push me to buy and move on type. I had a small budget to buy a lot to build on and Marie was an awesome negotiator. I went through many hurdles with these 3 sales and purchases. Every time I had an issue, Marie or Deirdre helped me out and I was able to carry on to get my home. Deirdre and Marie are not simply selling or buying a house for me, They made my dreams come true and can make yours come true as well. They are my tailor-fit realtors.

Eliah Kim