If you are in the process of looking to buy a home, it's time to get pre-approved! RBC Royal Bank and TD Canada Trust have already increased their 5 year fixed posted rate to 5.44%. Speculation is that the Bank of Canada will be raising their Benchmark Rate to 5.44% on Monday, February 14, 2011.
What does that mean for buyers? Time to get yourself pre-approved! In some situations this raise will mean that the mortgage you qualify for could be significantly reduced. This will especially impact buyers with less than 20% and clients interested in variable rate mortgages or fixed rates of 1-4 years.
Please also remember CMHC's announcement from last month - the mortgage rules change on March 18, 2011 and the maximum amortization period lowers to 30 years (from 35 years). This can also lower the total mortgage amount that you may qualify for.
Contact me today and I will help get your pre-approval in motion!