Are Rates Finally Going Up?
Marci • November 15, 2016
Well, after many years of unprecedented low interest rates in Canada, it appears the Canadian government by way of rule changes, and the American government by way of Trump, are impacting mortgage rates. Simply put, the Canadian government has recently made it more expensive for banks to lend money, while predictions of the policies that could be implemented by Donald Trump as the new President of the United States has impacted the bond market, which in turn compels lenders to increase rates.
Earlier this month TD announced that they were increasing their TD Mortgage Prime Rate to 2.85%, and if you have already scrolled through your news feed this morning, you will have seen that RBC increased their fixed rate mortgage pricing effective immediately. In typical fashion, it won’t be long until most lenders follow suit and we see increases to mortgage rates across the board. Because let’s face it, banks will use any excuse to make their businesses more profitable.
There is certainly no reason to panic, this seems more like a correction than anything, however, are rates finally heading upwards? It appears that way.
So what does this mean to you? Well… here are some action points.
- If you have a mortgage that renews in the next 6 months, let’s talk, we can look at your options, and determine the best course of action for you.
- If you have been thinking about refinancing your mortgage to access equity, there is no time like the present. Let’s talk.
- If you have been sitting on the fence, considering a venture into the housing market, but aren’t sure… it’s probably a good idea to at least get a pre-approval and hold a rate for up to 120 days. No obligation, but if rates are going up, a rate hold now makes sure you save some money if you decide to make your move.
- If you are thinking to yourself, I have no idea what I should do… it never hurts to get in touch.
As you can see, regardless of your situation, if you have mortgage questions, please don’t hesitate to contact me anytime , I would love to talk through your options and help you figure out a plan that works for you. I’m never too busy for new clients, or to connect with existing clients.
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Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.
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