Over the past few weeks we’ve seen fixed mortgage rates trend slightly higher as bond yields have increased. Most five-year fixed rates are now generally falling in the mid to high 4% range, depending on several factors unique to your mortgage and financial situation. Variable rates have remained unchanged, with the Bank of Canada’s next rate announcement scheduled for September.
The housing market has also slowed across much of Canada this summer. Many major markets have seen fewer sales and more inventory, giving buyers more choice and, in many cases, greater negotiating power. While every local market is different, the fast-paced conditions of the past few years have eased, creating opportunities for buyers who are well prepared.
If you’re thinking about refinancing or breaking your current fixed mortgage, this market may also work in your favour. As bond yields rise, mortgage penalties can sometimes be lower than they were just a few months ago. If you’ve been considering making a change, it’s worth reviewing the numbers rather than assuming the penalty will be too high.
Renewing Soon? Start Early
If your mortgage is coming up for renewal within the next few months, now is a great time to start reviewing your options. Most lenders allow you to secure a new rate up to 120 days before your renewal, giving you plenty of time to compare lenders and mortgage products without feeling rushed.
While rate is important, it’s only one piece of the puzzle. Features such as prepayment privileges, portability, payment flexibility, and potential penalties can all have a significant impact depending on your future plans.
A renewal is also a great opportunity to review your overall financial picture. Depending on your goals, you may want to:
- Lower your monthly payments.
- Pay off your mortgage sooner.
- Consolidate higher-interest debt into your mortgage to improve cash flow.
- Access equity for renovations, investments, or other financial goals.
- Simply make sure you’re still in the mortgage that’s best suited to your needs.
A quick review now can help ensure your mortgage continues to support your financial goals for years to come.
If anything has changed since you arranged your mortgage, whether it’s your finances, your plans, or your goals, it may be worth taking another look. I’m always happy to answer questions and provide advice whenever you need it.
