I was recently once again a guest on the the Build Wealth Canada Podcast, hosted by Kornel Szrejber.
With inflation slowing down here in Canada, we are starting to hear talks about the Bank of Canada no longer planning to increase our interest rates, or maybe even lowering them.
This can have an impact on your investment portfolio, particularly if you hold bonds, because remember there is that inverse relationship between interest rates and bonds, where increases in the interest rate tend to lower the value of the bonds that you hold in your portfolio. On the flip side, if the Bank of Canada lowers our rates, you can expect your bonds to increase in value.
Apart from your investments, the interest rate can of course have a substantial impact on your month-to-month cashflow, when it comes to things like mortgages as well as the real estate market in general.
So, with Spring just around the corner and the real estate buying and selling season about to kick-off, we discuss:
-What Canadians should be thinking about when it comes to their mortgages right now.
-Should you do a fixed rate or variable rate mortgage if you’re buying a home or have a mortgage coming up for renewal?
-What if you’re considering locking in your mortgage to a fixed rate?
The optimum answer for all of this can change for you depending on what is happening in the market right now and your own situation, so I take us through the different things you should consider.
You’ll also learn:
-What your options are if you find a better mortgage than what you have right now.
–What if the rates do drop and you’re now able to get a less expensive mortgage? Can you switch? What can the penalties be? And, can it be worth it to pay those penalties if you find a better mortgage?
Questions Covered:
- What’s happening in the real estate market right now? Is it more of a buyer’s market or a seller’s market? And what should we expect if we’re considering buying or selling our home currently, here in Canada?
- Fixed rates vs variable rates. Which ones make the most sense right now?
- If someone is considering locking in their variable rate mortgage right now to a fixed rate mortgage, what should they be thinking about when analyzing this decision?
- If anybody listening sees a better rate or terms than what they are currently paying, what are their options when it comes to switching their mortgage, especially factoring in the sometimes very large fees that can be charged when switching mortgages.
- Listen to it on Apple Podcasts.
- Listen to it on Spotify.
- Listen to it on Google Podcasts.