Get a Mortgage Fast - Why You Need to Move Quickly in 2022
February 22, 2022 | Posted by: Ron Chan
Consider this to be an alert for new buyers and investors. Last week (February 16, 2022) Timothy Lane, Deputy Governor of the Bank of Canada, made some very interesting statements in an online press conference. Within hours of concluding his discussion, industry experts lit up financial news boards to signal that borrowing rates will rise, including those applied to home loans. The Financial Post headlined the response to Lane's talking points in their article titled Bank of Canada deputy signals rate hike coming in two weeks. They issued the following statement:
'The Bank of Canada is widely expected to start a rate-hike cycle at the next policy meeting. Markets are pricing in as many as seven increases in borrowing costs over the next 12 months.'
Seven borrowing rate increases over the next 12-months. That's a bit of a pill to swallow.
The next scheduled date for announcing the overnight rate target is this coming March 2, 2022. At this time, the Bank of Canada will address their outlook for the economy and inflation. The reported outlook will most likely skew favorable. For one, supply chain woes are expected to fallback to normal. In addition, polls have made it clear that after 2-years of living with the pandemic, the Canadian public has grown tired of restrictions and demands that they end. This frees-up politicians to remove roadblocks that have hampered the economy. Subsequently, the Bank of Canada can now do what its been eager to do - raise the prime rate.
Timothy Lane did express than any rise (be it on March 2 or after) will be reasonable so that borrowers aren't priced out of big purchases such as real estate. But again - with 'seven increases in borrowing costs' on the horizon a small increase next week can quickly grow as the year progresses. Variable mortgage rates and fixed mortgage rates alike will rise accordingly.
So what should new buyers do? Get a mortgage fast!
How do you get a mortgage fast? Lock into a preferred home loan rate today. Before you can lock into a rate, connect to a Winnipeg mortgage broker and get pre-approved. This will not only confirm the price range of the homes you can hunt for, it qualifies you to receive a mortgage rate guarantee for a specific period of time, typically from 60 to 130 days. A reputable mortgage broker will manage the pre-approval process for you to ensure that it gets completed the right way, and right away. Better yet, the right broker will get you access to the lower and unadvertised rates, the latter of which will be especially important if you find this article after the Bank of Canada has increased the prime rate.
Call 204.290.9950 to speak with Winnipeg mortgage specialist Ron Chan of INVIS Canada. Let Ron know that you want to get pre-approved for a Winnipeg mortgage today and he'll take care of you.