By Riki Unrau

For the last few years Canadians have enjoyed the lowest mortgage interest rates on record. Yet there is speculation on whether or not those rates will drop even more or if they simply have nowhere else to go but up. Much to the dismay of many, industry experts are confident in the latter.

We are now seeing a plateau in home purchases due to the high cost of homes, which are expected to deflate a little as interest rates rise. The reason being is that it will be more difficult for first time homebuyers to get into the market forcing them to stay renters for longer. It may also affect those who need to re-finance at a rate they may not be able to afford. This will create an oversupply of homes on the market and sellers will have no choice but to lower their asking prices.

So either you are paying more on the initial home price or you are paying more in interest.

You might be asking when this is going to happen. Different experts will tell you different things but the consensus seems to be that we can expect to see the rates rise sometime in 2016. There are a few lenders that have increased their rates so the ball has already started rolling.

Real estate is a very cyclical industry and will always have its ups and downs. If you want to discuss your particular situation to see how this will affect your plans to purchase then contact your local Mortgage Broker for more information.

– Riki Unrau is a Mortgage Broker with Invis Williams and Associates, located at 828C Baker Street, Cranbrook, BC V1C 1A2 – 250-919-6402. For more try: https://invis.ca/brokers/Riki-Unrau

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