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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, I thought it would be great to have our Resident Mortgage Expert, Sean Cooper back on the show to 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 Sean takes 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?
About Our Expert Guest:
In case this is your first-time hearing Sean on the show, he is the show’s Resident Mortgage Expert and who I go to and who I send friends and family to for any mortgage related questions.
Sean is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians.
He is also an independent mortgage broker and has made himself available to help answer mortgage related questions to listeners of the Build Wealth Canada Show.
If you have any questions, or are just looking to get a shortlist of the best mortgages that he’s been able to find in Canada (since he’s constantly on the lookout for the best mortgages), you can reach out to him over at buildwealthcanada.ca/sean.
And now, let’s get into the interview.
Resources Mentioned:
A Big Thanks to Our Sponsors:
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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.
- For anybody listening that has questions for you, or would potentially like to work with you or see your research on the top mortgages that you’ve been able to find here in Canada as a mortgage broker, can you tell us more what the process is for Build Wealth Canada listeners to get a free call with you?
Disclaimer:
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For greater certainty, no part of this presentation may be provided to investors and/or potential investors without the written permission of BMO GAM. The information contained herein is not, and should not be construed as, investment advice and or tax advice to any individual. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. This communication is intended for information purposes only. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. BMO GAM undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
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