Date Posted: January 10, 2018
Frank Napolitano is joined by host Henry Burris discussing what consumers can expect in the mortgage environment in 2018 including rate increases on the horizon and what credit facilities are not using the stress test rules to qualify new mortgage applications.
Frank, along with many industry professionals, is expecting the Bank of Canada to increase the overnight rate at their next announcement coming January 17, 2018. Mortgage lenders have already started increase their own rates in anticipation.
It is recommended to lock in a rate now for the 120 rate hold period before rates increase further if you are thinking about obtaining or adjusting your mortgage in the first 6 months of 2018.
Frank also makes a very important point that provincially regulated credit unions are not required to qualify mortgages using the stress test rates which may be practical for some borrowers.
Contact your Mortgage Broker today to see how this may affect you and how to handle the changes in the mortgage industry.