The most common question I am getting these days relates to interest rates. Clients want to know whether to go with a variable (ie prime -.60% or 4.15%) or a fixed rate (ie 5.34%). Generally speaking (based on history) going with a variable rate will save you money over the long term. You will save about 1% or more per year right away, and you can lock in to a fixed rate at anytime. However, this is not for the faint of heart and there is a risk that if the prime rate goes up substantially you could be paying more overall. For those clients wanting to know their rate will not change throughout the term, then I would suggest going with a fixed rate. As a mortgage broker I constantly monitor rates and will provide notifications to my clients when rates start to rise. I would personally go with a variable rate at this time but the choice is up to you!
Another popular question these days pertains to the housing market situation in BC. Prices have leveled off and dropped slightly in some areas. Could the market dip further? Yes. Will you save money by waiting until next year to buy? Maybe. Interest rates are expected to be going up this year and next. Even if you manage to purchase a discounted house in the future, there is a good chance you will be paying more interest on it. Your total monthly cost (principal + interest) could be the same if not more. It's very difficult to predict the future, but Vancouver is probably always going to be the most expensive city in Canada. If you'd like me to help you secure a mortgage please give me a call anytime @778.861.3336.
Happy House Hunting!