I hope you had a great week! I was at a Mortgage Conference earlier this week and we had Benjamin Tal- Chief Economist of CIBC as one of the guest speakers. He said something very interesting which stayed with me. He stated that the “Bank of Canada would rather be in a Recession than an Inflation. And that they will do all they can to get out of inflation.” Inflation is affected by many things, but the interest rates is what the Bank of Canada can control so they are increasing rates and will most likely keep them elevated for a while to get out of inflation. This means that we will continue to see rates increase this year and then most likely hold for 2023 and then will start coming down in 2024. This week with the announcement that inflation rates higher than predicted, this has increased the bond rate, which is forcing the fixed rates to increase for all terms. Now some good news! It is still a great time to buy a house if you can afford it, as they are predicting a housing shortage. A good strategy would be to get in while housing prices have cooled (slightly as we know in Alberta there wasn’t anything crazy) and before rates get too high, go with a smaller term and then be set for renewal once rates drop. If you have any questions please feel free to reach out!
Mortgage Broker /Owner
#201, 6650 177 Street NW, Edmonton Alberta T5T 4J5