How These Recent Changes In Mortgages Could Affect You

In March 2020, the Bank of Canada tried to sway the banks to lower the mortgage interest rates by cutting the prime rate by 0.5% for three consecutive times in one month, which is unprecedented. 

The Bank of Canada is also implementing quantitative easing, which essentially is injecting cash into the mortgage bond market, but there is a fear it could lead to currency inflation.

These two emergency measures implemented by the Bank of Canada are attempts to influence the mortgage interest rates (both fixed and variable) to be lower. However, the final decision lies with the banks, who are influenced by the government.

These changes were not introduced in haste by the Government of Canada and are not considered permanent measures. When the economy returns to normal as we know it, you might see the cuts to get removed and the mortgage interest rates to go back up to the days before the COVID-19 pandemic struck Canada and the rest of the world.

One thing is for sure, you can expect rate volatility in the mortgage interest rates, which can be concerning at the present uncertain time. However, it can also be an opportunity for those who work with a licensed mortgage agent professional like myself.

I am offering the Mortgage Monitor Program to my clients so that they can benefit from lower interest rates, and make thousands of dollars in savings. For example, a client with a drop in 0.5% interest rate can save up to CAD$10,000.

To achieve this favorable situation, I take swift action on behalf of my clients when interest rates drop lower, as my team is continuously following the adjustments on a day to day basis. We do this for our clients even if there is no global pandemic, which is another value-add that no other licensed mortgage agents are willing to do for their clients.

So, to take advantage and avoid the expected rate volatility, it’s best to be prepared in advance by taking proactive measures and signing up for the Mortgage Monitor Program today.

With many years of experience, Home Resolution will help you secure a mortgage. We aim to deliver the right solution that fits your current and future needs. You can expect speed and ease when interacting with us, both online and in-person, and we back up our work with a guarantee to protect you in case the unexpected were to happen.

Our mortgage office is in Richmond Hill, while our real estate office is in Markham, and we serve clients across Ontario and the Greater Toronto Area.

If you have any questions about mortgages, contact us by clicking here or you can learn more about the other services we have to offer.