Interest Rates Have Gone Up

We have had some warnings the past few days that rate hikes were coming and I just got confirmation from Centum Canada Mortgages (the Century 21 affiliated mortgage brokers) that rates have indeed gone up to 3.79 for a 5 year term. If you are thinking about buying a house for sale in Saskatoon it doesn’t hurt to get your rate locked in and held.

The alarm was sounded on Monday by Bank of Canada governor Mark Carney as household debt has reached an all time high. These low interest rates are not here forever so he warns that we need to be more cautious. The tone indicates that he may be setting the stage for a rate increase next year.

Finance Minister Jim Flaherty says they will keep tightening mortgage lending rules as needed to keep credit growth in check.

As a Saskatoon Real Estate Agent I think it is great to take advantage of the current low rates to build your retirement portfolio and to get started in the Saskatoon real estate market but only if you feel secure in your job and in your earning potential as when it comes time to renew your mortgage after 5 years and you have been living close to your means or slightly above your means those rate changes will have a huge and sometimes life changing affect on you. Some people are forced to sell while others just look at different options like getting a room mate or a boarder. If you are thinking of putting your Saskatoon house for sale let me know.

There are other risks in our economy and the high dollar is not helping the Canadian economy. As consumers we like it (especially with the Saskatoon winter we are experiencing it is nice to vacation in the southern US with the dollar being at par!) Debt worries in Europe also affect us here so rate hikes may be held off according to some analysts as they believe there are bigger fish to fry.

Kari Calder
Century 21 Conexus Realty Ltd
Saskatoon, SK

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