The incredible rise of house prices across Canada over the past few years may come as no surprise, but many home owners are sitting on a time bomb and nobody knows when it will explode; however, there has been a lot of talk of rising interest rates to help slow down this phenomenal growth. Houses are getting too expensive. Simply speaking, the divide is getting too wide between the money people earn and the price of real estate—how much money a person earns at the end of the month and how much he or she has to pay for his or her home.
Many existing home owners have mortgages rates which are locked in for the duration—but many others do not. All home owners need to look carefully at their existing mortgage details and decide what effect these interest rate hikes will have on their own particular situation. Will it make life more of a struggle? Will it make no difference whatsoever? Are they already living on the knife edge with increasing interest rates potentially tipping them over the edge? Will these rising interest rates make their payments completely unaffordable and put them at risk of losing their homes?
Unfortunately, there are lots of home owners who will struggle to make ends meet if and when these rate hikes take place. Waiting until it has already happened is just waiting too long; the time to act to safeguard their future, their families, and their homes is now!
There’s lots of talk in the city about the cause and effect of rising interest rates. There are arguments both for and against the increasing interest rates, but rest assured something is going to happen sooner or later, and the trick is to be prepared well in advance.
People who are living well within their means and have a locked-in interest rate on their mortgage may be able to relax, and anyone who has substantial savings may be thrilled at the possibility of future interest rate hikes, but there are plenty more people who should seek out their mortgage broker and take a long, hard look at their situation.
Mortgage brokers can’t just help at the beginning of the real estate purchasing process; they can help in so many more ways too.
- Initial mortgage applications
- First time buyer mortgage applications
- Annual mortgage reviews
- Mortgage renewals and transfers
- Mortgage re-financing
- Debt consolidation
People facing a bleak future at the prospect of potential interest rate hikes should contact their mortgage broker and find out about any steps they can take to safeguard their future. Interest rate hikes may be seen as the answer for the country at large, but how many individuals will have to suffer in the meantime? It’s true that “you can’t please all the people all the time,” but staying one step ahead of the game can ensure financial stability in the future, and mortgage brokers like the GLM Mortgage Group can help home owners to find the best options which are open to them for safeguarding themselves against increasing interest rates.