Great news coming if you’re renewing a mortgage, you’re about to save money
Canadians renewing a mortgage in the next six months are likely to be all smiles as they end up with a lower interest rate that should prove to be positive for the overall economy.
The Canadian Association of Accredited Mortgage Professionals (CAAMP) has announced in its annual state of the mortgage market, that the average rate of 140,000 Canadians who's mortgage is due for renewal soon is 3.5%. Renewing their mortgage is likely to be a positive event for them with rates being a historical lows.
Record low interest rates have continued to propel the housing market, resulting in the Canadian Real Estate Association reporting that October sales were the strongest for the month since 2009.
CAAMP has also reported that out of 1.35 million Canadians who renewed or refinanced mortgages, 1.05 million saw their rate drop.
Despite concerns of Canadians carrying more debt, 38% of of people with a mortgage took some action to pay down their debt faster than they had to. One of the top methods Canadians chose to do, was to increase a monthly payment or make a lump sum payment. Another 7% of Canadians increased the frequency of their payments, which can result in reducing your amortization from 25 years to 21.5 years.
Click here to read the full article on The Financial Post.