Barrie Real Estate Mortgage Rates at Historic Lows

Long term mortgage rates have dropped to the lowest level in Canadian banking history and the rush to “lock in” is expected to pick up!

If you’ve been considering locking in your variable rate mortgage, the Bank of Montreal made a BIG splash this past week and was the first major institution to break the 3% mark with their ultra-low 2.99% closed fixed rate 5 year mortgage. Other banks answered back with their own incredible deals like ING Direct. They’ve come up with a 10 year, fixed rate product at 3.89% The TD bank has also lowered rates on six and seven year fixed rate terms and I am sure there will be more to follow. Farhaneh Haque, Director of Mortgage Advice and Real Estate Secured Lending at TD say, “the argument to lock in your mortgage rate has never been stronger. There is no guarantee these deals will be available in two years”

This is awesome news for anyone considering purchasing a Barrie area waterfront or luxury home. When interest rates are lower, people spend and borrow more money. This affects the economy in a positive way. If, however, the economy grows too fast, it can lead to inflation. In that case, we will see the Bank of Canada raise the rate, in order to slow down spending and borrowing, curbing inflation. According to their website, “The Bank of Canada sets the target for the overnight rate at a level that will keep inflation low, stable, and predictable over the medium term. Low and stable inflation provides a favourable climate for sustainable growth in output, employment, and incomes”

Traditionally, our spring market is our busiest time of year, usually “heating up” in March, but this year it has already started! With more and more new listings coming on board everyday and historically low mortgage interest rates, maybe that luxury home or vacation property will become a reality for your family this year. Make an appointment with your financial advisor or lending institution and get pre-approved before you start looking. You’ll be surprised what you’ll be able to afford with rates like these!

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Krista Alkerton has been an accomplished, result driven Barrie real estate agent for over 15 years now, specializing in luxury homes and waterfront property in the Barrie and Lake Simcoe areas