During the busy holiday season, there is some welcome news that could bring a little extra cheer at a time when many are looking to make the most of their budgets.

Bank of Canada Announces Interest Rate Reduction

On the final rate announcement for 2024, the Bank of Canada once again reduced interest rates by 0.5% to stimulate economic growth and maintain its inflation targets. This move aims to provide some relief to households, encourage spending, and support businesses across the country. While the rate cut has widespread implications for the economy, it also directly impacts various financial products, most notably mortgages.

What This Means for Your Mortgage

If you have a variable-rate mortgage, you’re likely to see immediate benefits. The interest rate on your mortgage may decrease, which could lower your monthly payments. This is certainly a welcome gift for homeowners, as the lower payments may provide some breathing room in your budget, especially with the higher costs of living many have experienced in recent months. For those of you looking for some financial flexibility during the holidays, this change could be a timely and appreciated break.

If you have a fixed-rate mortgage, the situation is slightly different. Since your interest rate remains locked in for the term of your mortgage, this rate cut won’t directly affect your current payments. However, there’s a silver lining: When your mortgage term comes up for renewal, you may be able to take advantage of the lower interest rates available at that time. This could provide an opportunity to secure a more favourable rate, reducing your future monthly payments or allowing you to pay off your mortgage faster.

Opportunities to Consider

With this interest rate reduction, now could be the perfect time to assess your mortgage situation and explore ways to make the most of these changing conditions. Whether you’re considering refinancing your mortgage to take advantage of lower rates or simply reviewing your current terms to ensure they’re still the best fit for your financial goals, this is a moment to evaluate your options.

Refinancing could help you lock in a lower rate and result in long-term savings. Additionally, refinancing offers the possibility of adjusting your mortgage to better suit your current circumstances, whether you’re looking to consolidate debt or shorten your mortgage term. Given the rate cut, you might also consider the benefits of consolidating other high-interest debts into your mortgage, taking advantage of more favourable terms.

Warm Holiday Wishes

As the year draws to a close and the holidays approach, we want to extend our heartfelt wishes to you and your loved ones. May this festive season bring joy, peace, and prosperity to your home. Whether you’re celebrating with family and friends or enjoying some quiet time to yourself, we hope you have the opportunity to relax, recharge, and reflect on the positive moments of the year.

The House Team Is Here to Assist

For personalized advice, get in touch with our team here at The House Team. Together, we can make the most of this opportunity and ensure you’re set up for success in the coming year. Call our team at (613) 962-1388 or request a free appointment HERE. We are here to make the process as smooth and stress-free as possible.

Our team wishes you a wonderful holiday season and a bright start to the New Year!

Given the large financial commitment of a mortgage, it’s surprising that so many homeowners go on auto-pilot when it’s time to renew. Of course, your lender wants your repeat business and their renewal letter (typically sent between three and six months before your mortgage matures) will make it very easy and convenient for you to oblige – just sign the letter and your mortgage renewal is done.

Some borrowers may not even realize they don’t have to accept their lender’s offer. They can and should explore other options available in the marketplace, especially now since the stress test is no longer a factor if you want to switch lenders at renewal.

So, when you get your lender's renewal letter, ask yourself one simple question: “Can I do better?” The answer in most cases is a resounding “YES”.

Six Reasons To Work With An Expert On Your Mortgage Renewal

Here's why getting a mortgage expert working for you as early as nine months before renewal is a great way to ensure you get the best deal:

1. Recently announced changes have eliminated the stress test for borrowers who want to switch lenders at renewal, which means you have a choice! Since we have access to over 50 lenders, and thousands of product options, our team can shop around to ensure you are being offered the best deal possible.
2. A good credit score is important when you're looking to switch lenders – and your current lender may also consider your score at renewal. You have more control over your credit score than you think and may want to discuss credit improvement strategies. Our team can help! 
3. If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage to improve cash flow and save on interest. Renewal is the perfect time to do this. Our mortgage experts can run the numbers to see if this strategy makes sense for you.
4. Taking on new debt or leaving your current employment before renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes on your personal situation.
5. If your mortgage is uninsured, our mortgage brokers can help determine if you can switch to a lower-rate insurable mortgage that offers long-term savings.
6. If you need to free up cash flow for specific needs or life situations, a 30-year amortization might be an option for you to consider (20% or more in equity required).

Remember, our team works for you! With access to dozens of lenders and hundreds of mortgage options, our goal is to help you make informed decisions so you always get the best package of rates and features that best fits your needs.

If you have any questions or need personalized advice on how these changes impact you, The House Team is here to help. Call our team at (613) 962-1388 or request a free appointment HERE. We are here to make the process as smooth and stress-free as possible.