I'm not sure if you have heard or not... but interest rates are predicted to rise 1-2% this year and another 2-3% for next year. If that does occur as is expected, have you considered how that will affect your financial portfolio? Yes besides the HST and the new rules on Mortgage loans, higher interest rates will be the third strike to try to prevent a housing bubble (yes...the craziness we see in the current Toronto Market).
My biggest concern is for those whose mortgages will be coming up for renewal and those who currently have a variable mortgage (closed or open).... how will you handle a 2-4% interest increase... and are you aware of how much higher your monthly payments will be if that is the case?
You should start planning now!
If you were a first time home buyer... and put 0-5% down on your home and are over leveraged- you ought to be really concerned. At the minimum you should consider locking in for 5 years now if you already haven't and look into diligently paying down your debt.
Have any real estate or mortgage related questions... email jasjagpal@rogers.com and our team of financial experts will get back to you.
Jas Jagpal, Remax Dynasty Realty Inc.,at Markham Rd & Steeles Ave
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