Well, the US election is over, we have a new president. At Robert Floris’ Mortgage Architects hamilton office, we only worry how it will affect our mortgage clients. In other words, will policies or mortgage interest rates be affected. Today we will examine where the future may be in terms of the cost of borrowing money.

Hamilton and the Golden Horseshoe have benefitted greatly by the continuous lowering of mortgage interest rates. Home prices have increased year after year. There is no doubt in the long run rates must and will go higher. For over 30 years interest rates have been declining. Today I will put my analysis as to the immediate effect after the election. The bond market which is a lot smarter than people give credit has yields on bonds going higher. In other words, the bond market is betting that rates will go higher. Why? They believe the new government will cut taxes, spend on infrastructure. This will cause inflation to go up and interest rates will follow.

What does this mean to the average Canadian? If US rates go up, normally Canadian rates will as well. If I have a variable rate mortgage, the days of neglecting your adjustable rate mortgage appear to be over. It is time to stay vigilant.

Robert Floris is a mortgage agent located in Hamilton, Ontario on the East Hamilton mountain, serving the GTA, Ontario and the rest of Canada with the best service and excellent mortgage rates. Call Robert if you are consolidating debt, refinancing your home, or purchasing a new home.