Worried About Rising Mortgage Rates? Contact Your Burlington Mortgage Broker HW Advantage
There’s no doubt about it, interest rates are on the rise, and with them, rising mortgage rates. But should you be worried? Not as much as you may think. Contact HW Advantage, your Oakville and Burlington mortgage broker to find out how you can get the best interest rates for a new or renewing mortgage to beat rising mortgage rates.
Rising Mortgage Rates – What is Better, Fixed or Variable Mortgage?
During times of rising mortgage rates, many people move to fixed rate mortgages. And that’s not a bad decision. When you’re uncertain how volatile the interest rates will be, and for how long, many feel safer with a fixed mortgage rate. You’re comfortable with your payments, you understand how fast your principal is being paid down, and you don’t have to worry if interest rates rise even higher. But don’t count out a variable rate mortgage – they could be the right choice for some.
And if you have a variable rate mortgage, stay calm. It may be better simply to keep it. For one thing, the cost to break your mortgage terms could be more than the savings you might see in switching. For another, remember that over time variable rate mortgages tend to perform better than fixed rate mortgages.
How High Will Interest Rates Go?
Typically interest rates rise to slow down inflation. Right now, inflation is very high – you see it in prices at the gas pumps and on grocery store shelves. It’s hitting everyone, everywhere. Not one – not even the Bank of Canada – is certain when and where it will end. The Bank of Canada seems to be taking a cautious approach, making minor rate changes and signalling they are anticipating higher rates. Oakville and Burlington mortgage brokers like HW Advantage are keeping an eye on the rates, and can help you fight rising mortgage rates. Start your mortgage application online with HW Advantage.
Should I Wait Out Rising Mortgage Rates Before Buying a Home?
That really depends on the available property and your financial conditions. The property of your dreams doesn’t come along every day, and if you hold off on purchasing, it may never go back on the market. That being said, it is currently a seller’s market. Rising mortgage rates have not yet fully slowed down the housing market. If you’re worried about rising interest rates, take stock of your financial situation and run the numbers. That house of your dreams may just be affordable. Even if you have to take a short-term loss, you are likely to make up the difference in the end – historically real estate has been a great investment in the longer-term.
A great way to determine if you can afford a property is to take a mortgage stress test. This helps you find out what type of mortgage you can afford, and helps provide you with an overview of your current financial situation. Interested in learning more? Call us at 905-541-6961.
Are There Special Self-Employed Mortgage Rates?
No. It seems that more people than ever before are self-employed. And while there are no self-employed mortgage rates, self-employed people may have to work a little harder to prove they can afford a new mortgage. If you have a good credit history and are simply renewing your mortgage, you should not experience many problems. But if you are applying for a new mortgage with a new lender, you may need to provide additional documentation to prove your income stability. That’s where a trusted Oakville and Burlington mortgage broker can really help. Our business comes from client satisfaction, and we have access to many alternative lenders. During times of rising interest rates, HW Advantage can help the self-employed get mortgage rates and terms that work for them. And we can even help with the paperwork! Contact HW Advantage today to get started.