To lock in or not to lock in – that is the question.
I have become a bit of a business news junkie. I admit it. I didn't used to be, but so many of the decisions that companies and financial institutions make affect how we live our lives. As a homeowner who can almost see the promised land (mortgage free!!), I listen with great interest any developments in mortgage rates. All the talk is discussing when the historically low mortgage rates that we are enjoying right now are going to rise. The Bank of Canada recently signalled that interest rates will be on the rise by June.
Whether you are just getting into the market, or trying to get out, you need to be prepared for any variations. The good news is there is lots of advice out there. The bad news is that it usually is conflicting.
There are a few handy sources that can let you base your decision on the numbers. The Canada Home Mortgage Corporation has a handy online calculator for figuring out a variety of mortgage options. Don't like the online? The library has a number of books that help you do the same thing. One example is simply entitled Canadian Mortgage Payments.
Want to read up on the basics? The Financial Consumer Agency of Canada has a publication available online and in the library entitled the ABC's of Mortgages. The PDF version is being revised, but the HTML version still answers your questions. And check out veteran business author Douglas Gray's book
Good luck on whatever you decide!
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