Rising Mortgage Interest Rates & Real Estate Update For Canadians

Rising Mortgage Rates - Sean Cooper

With fixed mortgage rates finally beginning to increase in Canada, many Canadians are wondering whether they should be locking in their mortgage rate in case interest rates continue to climb.

We also cover whether you can lock-in a mortgage rate now, and then have the option to renew at the lower rate if the interest rates continue to climb.

And, while it’s easy to get fixated on mortgage rates whether you’re an existing or future home buyer, it is worth mentioning that the penalties for breaking a variable vs fixed-rate mortgage can be drastically different, and can also vary significantly from provider to provider.

Which types of lenders tend to have the largest penalties?

What can we expect in fees depending on the lender and mortgage type that we choose?

We cover all that and more in this month’s episode.

Also, the spring real estate season is now upon us with lots of Canadians looking to buy and/or sell their homes. Our resident mortgage expert takes us through what you can expect, and how COVID is impacting the real estate market in Canada.

About Our Guest:

Sean is the bestselling author of the book, Burn Your Mortgage. He bought his first house when he was only 27 in Toronto and paid off his mortgage in just 3 years by age 30.

These days, Sean’s helping others burn their mortgages too, as an independent mortgage broker.

Sean has offered to answer for free, any questions that you, the Build Wealth Canada listeners have.

I’ve set up a special page for him so all you have to do is go to buildwealthcanada.ca/sean, enter your email, and Sean will be in touch with you and will be able to answer any questions that you may have.

He’s a licensed mortgage broker too so I definitely also encourage you to reach out to him if you’re looking to get a new mortgage or if your mortgage is coming up for renewal, as at the very least he’ll be able to provide you with a shortlist of the best mortgages that he’s been able to find across all of Canada from the 60+ lenders that he monitors.

None of this costs you anything, and there’s no obligation to get your mortgage through him or use any of those suggested mortgages.

At the very least, you’ll get some good education on the top mortgages available in Canada, you’ll learn what to look for when choosing your next mortgage, and you can always decide later whether you’d like him to help you with the process, or if you want to do it all yourself. It doesn’t cost you anything regardless.

As a bonus, I’ll also email you the Mortgage Checklist, which is a guide on the top things to look for and consider when choosing a mortgage. That link again to get in touch with Sean, get your questions answered, get the free mortgage checklist guide, and get that research on some of the best mortgage in Canada is buildwealthcanada.ca/sean.

Links & Resources Covered:

  1. Free private Q&A with Sean
  2. What’s your passive investing style? (Stream Kornel’s talk from the Canadian Financial Summit)
  3. EQ Bank (The bank that I use with savings account interest rates up to 30x higher compared to other Canadian banks). If you sign up through this link, email me any confirmation that you receive from EQ to bonus@buildwealthcanada.ca and I’ll email you my guide on the top ETFs in Canada, with an explanation of what I personally invest in and why.

Questions Covered:

  1. When we spoke before the podcast, you mentioned that fixed mortgage rates are finally on the rise. What are the implications of that for Canadians who already have a mortgage, as well as those that are looking to get a new mortgage?
  2. The spring real estate market is coming up. For those looking to buy a home or a rental property, what do we need to know about this particular time of year in Canada?
  3. Seasonality is clearly a factor when it comes to Canadian real estate. Can you take us through what we can generally expect depending on the time of year that we choose to buy or sell a home or rental property?
  4. Anytime interest rates move I’m sure you get lots of questions from your clients on whether they should lock-in their variable rate mortgage, or if someone is getting a new mortgage, whether they should go variable or fixed. Based on the current interest rate environment and the new changes to mortgage rates, what sort of analysis should we be doing to determine the best course of action?
  1. COVID is of course, still very prevalent here in Canada. Are there any misconceptions about COVID and its impact on real estate that you think are worth clearing up?
  2. As we head into the 2021 spring real estate season, would you say that it’s more of a buyer’s market or a seller’s market?

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