Regina Homes & Condos For Sale|Regina Real Estate 

Mortgage rates expected to remain steady

Rates will go up eventually 

Mortgage rates probably won't change dramatically within the next year or so, economists say.

Despite the steady forecast for the next year or two, Andrew advises new homeowners or those looking to renew their mortgages to choose a fixed, or locked in, rate with regular monthly payments that aren't tied to the prime.

 

"I'm a little gun-shy about variable-rate mortgages, just because you're in a period where mortgage rates are so low and there isn't a widespread expectation in the market that they're going to rise dramatically," he said.

 

"I'm a big one for certainty, and I think the big uncertainty is rising rates. We know they're going to rise — we just don't know when and we don't know by how much. So do you want to get into a variable situation where you've got no control over that?"

 

Marcus Tzaferis, a mortgage broker with MorCan Direct, disagrees. There are good deals on variable-rate mortgages right now, he said, especially from non-bank lenders that won't penalize you if decide to lock in.

 

"I've been doing this now for about 15 years — nothing happens all that quickly. This tool of inciting some fear that rates are going to go up — it almost works in the banks' favour. The banks make more money on the fixed rate," he said. "I don't think we're going to see rates increase any time soon." Benjamin_Tal

 

Tal said when it comes to fixed versus variable, it all comes down to the individual. There's no one-size-fits-all for mortgages. But, he warned, the pendulum will eventually swing back, so it's best to plan ahead. 

 

"If you're buying right now, it's very, very likely that five years from now, when you renew, rates will be notably higher," he said. "If you cannot finance your mortgage at rates that are one to two per cent higher, then you have to think twice about the type of house that you want to buy."

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Aaron Habicht
Cell:1-306-536-2454
Sutton Group - Results Realty
3904 B Gordon Road
Regina, SK
S4S 6Y3 CA
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