Why buy real estate in the Comox Valley NOW? Mortgage Rates Increasing!
Posted: Jun 18, 2010
Source: Anna J. Team Leader/REALTOR Coast Realty Group CV Ltd.
Quick answer:
Interest rates are predicted to go up by 1-1.5*% by the end of the year. What this means is that at the higher prediction a $250,000 mortgage will be an extra $200/month in payments - conversely, the same payment you would have now (before rates increase) would only get you a $210,000 mortgage.
To simplify further: Either your borrowing power is reduced by $40,000 or if you still want to buy in the same price range it costs you an extra $200/month.
Buyers need to make sure they are prequalified officially to guarantee that while they're shopping they will get the lowest rate during that time. Keep in mind that the rate isn't held forever. Buyers have between 60-120 days to complete the transaction not just put in an offer. Check with your broker/bank to see if you are actually officially prequalified and how long you've got to find a place/buy it/move in!
Sellers need to do the same thing! Prequalify for your next mortgage if you are not planning on porting your current mortgage from your existing home. This assumes you, too, can get 'er done in the time frame required...ie sell your house/find another/move in.
Not buying/selling right now? Check with your broker/bank now anyway, they can tell you if you should extend your term or take your chances.
My two favourite broker/banks:
Robert Buckley, Branch Manager 4th Street Credit Union robert.buckley@cccu.ca (Personal service galore, knows everyone by first name or 'buddy', his position and the CU style provides added flexibility, quick turn around.)
John Hudey, Broker RBC Royal Bank john.hudey@rbc.com (Johnny on the spot - available at all hours and on weekends, educates the client on what's best for them, great rates with no hidden surprises, quick turn around and funny as heck.)
If you have any questions about your real estate situation please contact me anytime. Sometimes what might not seem like the best time to make a move really is - you sell low but you buy low. Investments are different. Contact me and we can find out if it really is a good time for you to make a move!
Have an inspiring day!
*info provided by John Hudey subject to change at any time.
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