Monday, April 25, 2011
Canadian Mortgage Rates Going Up?
I was asked this question today from my new clients. The answer yes, there is only one way to go on the future of interests rates. The question is how high and how to manage the increases. In my opinion we are going to see prime rise to 4.00% to 5.00% over the next 24 months. These increases will only happen if all the other factors in the economy will have clicked into gear. This is the new normal in interest rates. We should not see or have had any economist predict higher prime rate. We have also had a generation 2000-2011 that only knows low interest rates. I think people should get used to the fact that long term we are in and will be historic low interest rates. Variable rate mortgages below prime and setting up the right higher payment structure will be the best option for clients to take advantage of this new maket place.