Bank Prime moved up by a ¼ point this pass Wednesday June 7/23 after a 3 month pause and now stands at 6.95%. This affects those with variable rate mortgages, Secured Lines of credit and Unsecured Lines of credit. Fixed rates have also been moving upwards in the last few weeks where most fixed rates are in the mid 5% range. We could still see further rate increases so consider the following:
- If you are buying, obtain a pre-approval immediately.
- If you have a variable rate mortgage where your payments change when prime rate changes and you cannot afford the payment increase, contemplate fixing your rate
- If you have a variable rate mortgage where your payments do NOT change when prime rate changes, you may be approaching your trigger rate where your payment no longer covers the principal portion of your total payment. There are different options depending on your lender that can be reviewed.
- If you are coming up for renewal, talk to Lotus Loans and Mortgages Corp. about your options ASAP so we can be ahead of game.
If you know someone who owns a home but is having affordability issues due to the increased rate environment, feel free to have them speak with one of the professionals at Lotus Loans and Mortgages Corp. for appropriate mortgage advice.
