Agent Blogs

ARE WE GOING TO SEE A RISE IN INTEREST RATES?

Here's a touchy subject for all of you out there thinking of buying your first home or anyone having to re-negotiate your mortgage.  Times have changed considerably since I bought my first home (this is where I sound like the old farmer 'up on the hill' who knows everything about everything and everyone who has been in the area for the last 70 years...an invaluable contact for someone like me). I bought my house in 1985 right here in the town of Collingwood.  A 3 bdrm brick bungalow in what was considered a 'good area' of town. I paid...$67,500.

At that time interest rates were sitting around 12% and there was no such thing as only 5% down.  The minimum downpayment was 25%.  And the amortization period was nothing like it is today with 35 years, 25 years was the longest time period you could consider.

Of course many of you are going to say "yeah but it was a lot easier to carry a mortgage on a house that only cost $67,500"  You are absolutely right, but...people didn't make the kind of money that they do today either.

Now that I've rambled away about the past, I will bring us all into the present and possible future developments that we will have to consider. Here is a link to an article from The Globe and Mail.

 http://www.theglobeandmail.com/report-on-business/flaherty-warns-on-mortgage-rules/article1407223/

It's always important to be aware of any potential changes that may occur and to take them into consideration if you are buying a home or renegotiating your mortgage.

Until next time.

Trish