Calgary is undergoing a sharp, shock in the economy and homeowners are looking to lock in mortgage rates now at the current historically low mortgage rates.
It’s cold out there. Commodities markets in Calgary have taken a deep hit and we all know the layoffs in the oil and gas sector have made people very uneasy.
What do you do in uncertain times such as these?
First, look to your best investment — your home. Be prepared and take advantage of one the great positives in the current market by addressing your mortgage rate.
When the going gets tough, it’s all about protecting your assets and your greatest asset is your home. Real estate is most affected by employment and in uncertain economic times, protecting your expenditures now could be critical to the future affordability of a mortgage.
Last week, I spoke about the Bank of Canada’s decision to leave its benchmark interest rate at 5%. Taking advantage of these remarkable low rates now can save you a world of worry.
What do you need to know about rate locks? Here are the top 3 questions you need to ask a Calgary mortgage broker.
- What is a rate lock?
A rate lock protects the borrower from rate fluctuations for the duration of the lock period. It guarantees that the lender will offer the borrower a specific combination of interest rate and points.
- When can a rate be locked?
Buyers typically must wait until a seller has accepted their purchase offer for a specific property. Further information will be needed to lock because the rate offered to an individual borrower depends on credit score, the loan-to-value ratio, the property type, locality and other factors, in addition to market rates.
- How much does a rate lock cost?
Borrowers are told there’s no charge for a rate lock. That’s true in the sense that the rate lock isn’t associated with a fee. But a rate lock isn’t free. Rather, a longer rate lock typically involves a higher interest rate, which is more expensive for the borrower.
Give me a call to discuss Calgary mortgage rates and how I may help you protect you and your family’s future.