On January 17th, 2012, the Bank of Canada kept its rate at 1.25% which is great news for those looking to refinance their mortgage or looking to reduce their monthly credit payments. With the growth of the overall economy in Canada is expected to remain moderate, along with downgraded credit-rating in Europe, it is expected that rates will remain low for some time.
This is the 16th straight month that the Bank of Canada has kept its rates the same. This announcement also comes following recent announcements by the big banks that they are lowering their interest rates to historic lows.
What does this mean for the home owner?
For a home owner, it means the immediate result is that the prime rate should remain at 3%, so if you have a variable rate mortgage, your payments will stay the same.
It also means that competition for rates will continue to be aggressive. If you have a mortgage with a high rate of interest, it is worth your time to talk to a mortgage broker and see if you can lower your monthly payments. In a market like this, it is a good time to consider refinancing your home at a lower rate of interest to pay down your mortgage faster or take out a home equity loan to pay down credit cards.
What does this mean if I have a credit line?
If you have a credit line based on your home equity, it means that your monthly payments will remain low so you can continue to pay similar monthly fees. If you are carrying debt on credit cards at high interest, and you own a home, or have a mortgage, it is a great time to refinance your home and get rid of high-interest credit card payments. Imagine one low monthly payment instead of multiple credit card payments?
The One Stop Mortgage group has sponsored a new service at Credit-Help.ca to provide debt consolidation help, improve credit and lower monthly payments. One Stop Mortgage Corp. can assist you in consolidating all of your credit debts into a mortgage on your property anywhere in BC or Alberta. This process will usually lower your monthly payments from what you are paying to all of your creditors and condense all your monthly payments into one easy to manage payment. Also you should notice that your credit score will increase and you will be more suitable to qualify for a conventional mortgage in as soon as 1 year. If you are already in collections don't panic - One Stop Mortgage can still help you.
a steady, low interest rate will impact the housing market?
The housing experts at Royal LePage say that 2012 is going to be a great year for buyers who will enjoy low interest rates, and for sellers who can expect prices to increase. While this may not be the case across the country, it is estimated that Canada will have an average price increase of 2.8%, yet in Calgary, Regina and Winnipeg, some experts suggest that housing prices will increase by 4-5%. With low interest rates continuing until perhaps 2013, it is a great time to consider refinancing, investing in real estate or paying off credit. Read more here.
One Stop Mortgage can help!
The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs. Give them a call at 604 874 8988 or 1-877-874-8988 or email them at email@example.com. The team of Mortgage Brokers at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.