When Mortgage Rates Drop, What Are The Opportunities?

In their last rate announcement, the Bank of Canada hinted that the door is open for a rate cut in 2020, potentially great news for those with variable mortgages and lines of credit. The coronavirus scare is causing bond yields to go down, lowering borrowing costs for lenders and allowing them to drop their fixed rates. We also typically see very competitive pricing during the spring market as lenders try to grab business during this peak time period.

As we head into this great rate environment, there are two specific opportunities that you may want to be ready to capitalize on:

1. If you are locked in at a higher rate than you could get today, you may benefit from switching your mortgage. I can provide a professional opinion on your options. 2. If you have enough equity, refinancing your mortgage could make good financial sense for any one of these reasons:   Fresh start. If you have too much high-interest credit card debt, rolling that debt into a low-rate mortgage will give you a financial reset with one manageable payment, improved cash flow and thousands in interest savings. Dream home. If you’ve found the perfect cottage, chalet, or the retirement home of your dreams, refinancing may be the way to make that purchase happen now if you’re not quite ready to sell your primary residence. Renovations. Renovating your home is often a less expensive option than moving. The right renovations can improve the quality of your life and increase the value of your home. Large expenditures. You may be able to get the funds you need for major expenses (new business venture, tuition, wedding etc.): a much better strategy than loading it all onto high-interest credit cards.