Jason Kenny, Alberta’s Conservative party leader says he’ll pull for changes to make it easier to buy a home. According to an article published by CBC, they are going to bat for those who are being pushed away from home ownership because of the prejudicial, regional, unfair stress test imposed by Canada Mortgage and Housing Corp. Interesting topic. I’m of the opinion the stress test is a good thing, especially given the increase we have seen in rates in the last year or so.
I have had conversations with some whose Fort McMurray mortgages are coming due for renewal. They are certainly feeling anxious about the rates being offered now in comparison to the rate they currently have. Higher rates mean higher payments and they are concerned about that, to be sure. Many of those people were qualified on the contract rate they received on their mortgage. Somewhere in the range of 2.29% – 2.79%. They are now looking at 3.49% – 3.79% to renew for a 5 year term. That is a substantial difference.
My advice is to shop around. Don’t sign those mortgage renewals till you know you’re getting the best deal possible. If you aren’t then it’s time to look at alternatives…moving your mortgage, if you qualify, to a lender who will compete for you business.
It’s always best to shop around!