What’s interesting is that we are expecting interest rates to increase slightly after July 1, as all lenders begin to price in additional costs as a result of the Department of Finance (DoF) wanting to reduce Ottawa’s direct exposure to mortgage risk. CMHC’s answer is to raise the cost of government-sponsored funding. Ultimately banks will pass the additional hike onto consumers. While nobody is talking about this, my best advice is to start planning ahead and speak with your mortgage broker as to the impact this might have on your purchasing power.
For more information, or anything mortgage related, don’t hesitate to give my office a call…403.242.5547.
