By The A-Team | Sep 11, 2019 | Fort McMurray- Buyers Advice
According to an excerpt from Livabl.com, Deputy Chief Economist for Scotiabank, Brett House and Raffi Ghazarian, senior research analyst, it is quite a very unusual and uncommon advantage:
“With long-term rates lower than short-term rates, home buyers have had a rare opportunity to lock in longer maturity fixed-rate mortgages at lower rates than if they had opted for variable rate mortgages.” - livabl.comZoocasa.com in a similar report reiterated the statement from the Bank of Canada, as part of the BoC’s September announcement:
For variable-rate mortgage holders or applicants, there won’t be any immediate change for rate prices; existing borrowers won’t see any fluctuation in their mortgage payments, and lenders are under no obligation to discount their variable rates at the moment for new borrowers. However, those considering signing up for a variable rate will already benefit from some of the lowest mortgage pricing available in today’s low-interest environment, and may see discounting in the months to come.- zoocasa.comNevertheless, there is a different way of looking into this scenario and making an analysis. For instance, the report from Betterdwelling.com showed that there may be a growth in the Canadian mortgage credit sector but other types of debt are also surfacing and they are not looking good:
Canadian households are pushing mortgage growth higher, but not other types of debt. Bank of Canada (BoC) data shows the rate of growth for mortgage debt hit a high for the year in July. Meanwhile consumer credit continued to the lowest rate of growth seen in years. An unusual match, since both segments don’t typically diverge for long. Compared to last year, both segments are showing continued signs of decelerating growth. - betterdwelling.comExperts are saying that the mortgage growth indicates acceleration compared to the previous year but credit growth also varies with longer-term trend. Moreover, there is consistency in terms of the longer-term picture:
Compared to last July, the rate is also 8.82% lower, meaning we’re seeing a faster slowdown than we are with mortgages. Odd, since consumer credit usually rises when the economy is improving, as it is now. - betterdwelling.com