The big news in the mortgage world these days has been the steady increase in fixed mortgage rates.

Since the start of the year, fixed rates have risen approximately one percentage point, or 100 basis points. 

As a general guide, for every 0.25% increase in mortgage rates, your monthly payment will increase $12-$13 per $100,000 of debt. 

For now, these increases are mostly impacting potential new homebuyers that haven’t found a home yet. But as time goes on, a growing number of fixed-rate mortgage holders will be reaching the end of their term and could face mortgage renewals at higher rates. 

Nearly 4-in-10 mortgage holders expect to renew their mortgage in the next two years, while 57% expect to renew in the next three years, according to data from Mortgage Professionals Canada. 

Many borrowers currently locked into a 5-year fixed rate mortgage could see renewal rates at least one percentage point higher than the rate they locked into five years ago.

If you’re one of these borrowers and are worried about higher monthly payments, a refinance could be your answer. 

When you refinance your mortgage, you’re essentially taking out a brand-new mortgage, complete with a new rate, new term and possibly a new amortization period. Plus, you may be able to take out some additional funds for renovations, investments, etc. 

Getting a refinance can potentially help you lower your monthly payments too. 

For one, refinancing ahead of your renewal means you can lock into today’s fixed rates before any other potential rate increases. Alternatively, you can switch to a variable-rate mortgage. Most variable rates are currently much lower than comparable fixed rates. Even though the Bank of Canada is expected to hike rates throughout this year and next, it would take a number of quarter-point rate increases before variable rates cost more than a fixed.  

Another option is to extend your amortization, which can lower your monthly payments. This may be a good solution for those who want to preserve their monthly free cash flow. It may also allow you to take out some equity from your home, if needed.

The downside is that this would extend the number of years before you become mortgage-free, although increasing your prepayments in future years could counteract this. 

Give us a call today at 403-818-3907 and we can direct you to one of our recommended mortgage specialists so you can decide if refinancing is right for you.

Purchasing Protocol

Preparing to jump into the home buying process is an exciting venture, but remember to follow the proper purchasing protocol so that when you do find the right property, the sale has the best chance of going through smoothly and successfully.

Working with a buyer’s agent, where you agree to work exclusively with one brokerage and they commit to represent you, prioritize your needs and ensure all your rights are upheld, gives you a better chance of purchasing success than braving the buying process alone. You would sign a buyer-broker agreement that clarifies exactly what your obligations are, and what services you’re entitled to.

The contract you’ll sign with your buyer’s agent shows your commitment to the sales professional in allowing them to guide you through the buying process. Remember that, while your representative will do the legwork in sourcing properties of interest for you, you’re also free to look for properties on foot or online, on your own. However, if you do discover a property on your own that you’re interested in viewing in person, you’ll need to let your buyer’s agent know so that they can make arrangements for you to view it.  Contacting the listing agent directly won’t get you a better deal and if fact could work against you, as the listing agent’s job it to represent the seller and get the best price for them, while your buyer’s agent’s job is to represent your best interests, as a buyer.

Ask your salesperson to walk you through your agreement, line by line, so you know exactly what you’re signing and what you can expect throughout the home buying process.

Cook Up A Great New Kitchen!

If you spend a lot of time cooking, eating and simply being in our kitchen, you recognize why the kitchen is one of the top draws for homebuyers, and also how kitchen remodels tend to be good investments.

Most homeowners can expect to recoup over 60 percent of their kitchen renovation costs down the road, upon the home’s resale, but in the meantime, a kitchen upgrade is a great way to bring function and joy to your everyday life.

Before breaking out the sledgehammer, take the time to plan out your wants and needs carefully. A cramped kitchen, for example, may not actually be too small, it may just be organised ineffectively. In fact, you may have extra storage room right in front of your eyes, in the form of higher cabinets that reach the ceiling, allowing for storage of little used or seasonal dishes, or bare wall space that can accommodate extra shelving, or even a yawning ceiling, ideal for installing a rack for hanging large pots and other cumbersome but necessary cookware.

Shifting appliances around can sometimes create more space without qualifying as a kitchen reno, but if you do have visions of a new kitchen with a completely different footprint, recognize the magnitude of the reshuffling before you start. Once you start knocking down walls and changing the location of plumbing and electrical outlets, you’re into major renovation territory, and correspondingly major costs.

Finally, if you’re not planning on moving, but instead intending to age in place, remember to talk to your kitchen contractor about planning a wide kitchen entrance to accommodate walkers or wheelchairs down the road, a wall oven instead of traditional stove , and adding pullout shelves to base cabinets for greater accessibility.

Be The Host With The Most This Summer!

The countdown to summer vacations is on, and many of us can’t wait to pack up and head out to a place where we can relax, unwind, and if we’re lucky, get pampered too! If, however, you’re on the other end of vacation travel plans and will be opening your door to friends and family this summer, employ some tips from high-end destinations to create five star memories for your own honored guests.

Bedroom Luxuries

After dragging their suitcases to their room, guests will need a place to open their bags and hang up some clothes. Provide a folding luggage rack or a small bench to help them avoid having to unpack their suitcase on the floor; clear some space and provide a number of hangers in the closet; and empty a drawer so your guests can easily organize their clothes. Consider providing a hand-held clothes steamer in case they need to get the wrinkles out of their wardrobe.

Ensure the guest room has a good bedside reading lamp, with some general-interest magazines on the bedside table, along with brochures of local attractions as applicable. Put a pad of paper and a pen on the bedside table with a note advising them of your Wi-Fi password and, if you have extra chargers, leave them on the table too should they need to charges their phone or laptop.

A great vacation starts and ends with a great night’s sleep, so in addition to fluffy pillow and clean, fresh bedding you’ll want to provide guests with additional comforts like cushy slippers and robes, disposable earplugs, eye masks (if you don’t have room-darkening blinds) and – why not? – a wrapped chocolate on their pillow for that luxury turndown service feeling! Go the extra mile by investing in a lavender pillow spray for the sweetest dreams.

If your guests quarters consist of a pullout couch in a common room instead of a bed in a separate bedroom, set up a portable folding room screen to provide your guests with some appearance of privacy.

Bathroom Necessities

Providing soft, fluffy towels that are clearly indicated for guest use are a given here. In addition, while your guests will most likely arrive with all of their own personal essentials, you’ll still want to place a basket of basic provisions in the bathroom in case they forget anything and are too shy to ask. Stock the basket with new toothbrushes, toothpaste, mouthwash, hand cream, shampoo and conditioner, lip balms, sunscreen, and even a small bottle of Tylenol or other comon painkiller. Make extra rolls of toilet paper easy to access, too.

Snack Service

While you may have the formal meals planned out, when it comes to snacks, the words “help yourself” may be the most misunderstood ones in the English language. Although delivered to guests with the best of intentions, this is a phrase that often causes consternation; after all, who truly feels comfortable rummaging through their friend’s fridge and cupboards for a midnight snack? Instead, draw on the convenience of hotel snack and mini-fridge options by setting up snacks specifically for your guests.

Extend your generosity, while providing clear-cut boundaries, by setting up a hotel -like snack station for guests to nosh on without feeling like they’re raiding your personal supplies. Make it easy on everyone by providing a basket filled with options like chips, granola bars, fruit, and bottle of water right in your guest room.  You could also consider setting up a coffee and tea station on a small table with a coffee maker, electric kettle, cups and all the supplies necessary for making hot drinks at any time.