The sky is not falling, but neither have rates. You don’t need to be worried by rising mortgage rates, as it’s a regular phenomenon that happens practically every fall. Last year, 5-year fixed mortgage rates went up to levels around 5.79%, 5.99% and even as high as 6.14% in January. So rest assured, rates should decrease again come springtime when lenders tend to get more competitive because that’s the main buying season in Canada.
The thing that you should be aware of, however, is the rising difficulty associated with getting mortgages. The Government of Canada’s deadline for 100% financing and 40-year amortization mortgages is October 15th, which means that those types of mortgages will no longer be available. Additionally, mortgage lenders are tightening their lending guidelines, including being much more picky about credit scores and histories.
Feel free to check out our current mortgage rates. If you’d like to learn more about the changes lenders are making, and the new guidelines set out by the Government of Canada, please contact us, and one of our mortgage brokers would be more than happy to speak with you!