Okay - so rates are on the way up. Nobody seems to know how much they will go up and how soon it will happen. For those folks about to buy a home, it would probably be a good idea to lock into a longer term mortgage to avoid having larger payments in the next year or two or three. After all, some of the big banks have raised their rates in the past few weeks by as much as 0.85%.

But what about those of us that have a few years remaining on the term of our mortgage? Here's something to consider:

If you have a mortgage with a year or two remaining on the term, it might be worth incurring a small penalty today in order to lock into a current rate for the next five years or longer. You will want to make sure you fully understand any and all penalties that may apply. If you decide to close out your existing mortgage and lock into a longer term mortgage, you will likely incur the greater of a three month interest penalty, or the interest rate differential, which could be much higher than the three month interest penalty. Due dilligence is key - it's recommended you contact a qualified mortgage broker to help you with your decision.

Gotta Move Fast!

Good day - the local market in K-W sure has been heating up in the past few months. It's been a challenge for many of my buyer clients to act quickly enough to view properties and submit offers - many of the new listings are being sold the day they come out on the market, at full asking price or more... and with multiple offers.

Having the option of receiving automatic updates has been a big help for most of my clients. The instant a new listing becomes available, an email is sent out to them that matches their specific criteria. Appointments can usually be made to see the property at lunch, late afternoon or early evening. In the background, I typically run a comparative analysis on similar homes that have sold in the area, and bring it with me to the showing so that the client can make an informed decision on whether or not to proceed with an offer, and to do so quickly. On many occasions, I have prepared the offer paperwork in advance with only a few details required to be completed by the buyer after the viewing (price, closing date, specials terms or conditions, etc.).

In order to be successful in this marketplace, you've gotta move fast!
Gotta run - I just got buzzed on some new listings for one of my clients.