Interest Rates Moving - Push the Panic Button

Interest Rates Moving - Push the Panic Button

Over the last few weeks in Ontario the interest rates has gone up twice and down once. Currently our 5 year closed rate is 4.34%. Each time the rate changes our media trot out endless stories about the doom and gloom of rate increases.

From every station you hear them shouting from the roof tops - panic time, rates are increasing people will lose their homes for sure. Than a new story strikes and we are off the front page until the next rate increase. But is it really panic time?

By any historical measurement rates are still low. While they have gone up marginally they are still very low. 5 years ago we would have begged for these rates. But we must remember in the long term rates will go up. It's the only way they can go.

What can do you do to protect yourself? Borrow wisely. Don't mortgage yourself to the hilt, leave room in you budget for the inevitable rate increase. When rates do go up no one is expecting a large increase. In the next year I would be surprised if they went up a full percentage point.

Interest rates will go up, but there is no need to hit the panic button.


Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229
Office519-949-0345 Cell