The Bank of Canada says half of all variable rate mortgage holders hit their trigger rate in November, and with the Bank of Canada’s latest interest rate hike, more people are looking at their options.
The trigger rate, which typically applies to variable rate mortgage holders with fixed payments, is the point when payments no longer cover the accrued interest.
The owner of East Coast Mortgage Brokers, Leslie Penney, says he’s seeing more clients with variable rate mortgages who are looking to lock in, while others have reached their trigger rates.
Photo via lesliepenney.ca
Most concerning says Penney is the number of people coming in with mortgage amortizations of 30, 40 and even 50 years.
Penney says fortunately, mortgages in this province are not as high as some other markets, but people are looking for greater affordability.
He says people are coming to the realization that the low interest rates of the last few years are “long gone.” He says locally lots of potential buyers are still hoping to get into the market, but they’re readjusting their expectations.
