• Will Mortgage Rates Stay Low?

    July 22, 2020
  • will mortgage rates stay lowWhy Mortgage Rates Will Stay Low

    • Why are mortgage rates so low?
    • What if my mortgage matures next year?
    • Should I refinance before rates go up?

    Let’s explain.

    Covid-19 has had too many negative effects on the Canadian economy and psychology of Canadians. The one silver lining is that Canadian mortgage rates have tanked. Creditors and purchasers of Canadian real estate have actually benefited from this pandemic mess.

    Will mortgage rates stay low? Our office at Robert Floris and Sean Howard’s Mortgage Architects office really believe it will.

    Rates will stay low simply for the reasons that there is no hint of inflation, the economy is hurting badly from the virus and if rates do go up, it will hurt Canadians and subsequently the economy even more. The federal government not only provided excess cash for unemployed workers, but also credit to businesses. We have no vaccine and even if we did, it would take years to get out of this financial mess. The best part is that both variable and fixed mortgage rates are low, and it will stay there for a while.

    Low rates are also having incredible effects of the real estate market. Canadian mortgage rates are at record lows and purchasers now can afford more and are prompting first-time homebuyers to move. As well, current city home owners are realizing that they can work from home and are deciding to migrate to the suburbs and the country. It is no surprise to us that areas like Jarvis and Cayuga are growing. The combination of low financing and Covid is changing how we live.

    As the pandemic ensues and the Federal Government continues to subsidize businesses, they will keep their rates down in order to finance the debt. As the beneficiaries will be the creditors, they will stay low for a while. If you carry a lot of debt, it is a prudent time to refinance to improve your financial standing.

    Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

    If you would like to see our Google reviews or leave one yourself, you can do so here.

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