Date Posted: November 23, 2021
Over the past few months, there have been many lenders raising their fixed mortgage rates. Rates are beginning to raise sooner than expected.
Raising mortgage rates make mortgage pre-approvals much more ‘relevant and meaningful’. The mortgage pre-approval gives you an estimate of how much you are able to borrow from a lender. It also offers a interest rate hold for up to 120 days in many cases. With rates rising having a rate hold for a fixed mortgage rate can be extremely beneficial.
Pre-approvals can also be beneficial for variable rate mortgages. “The rate for a variable-rate mortgage is expressed as a discount to the lender’s prime rate – and that discount is what could change during your pre-approval period.”
To read more of the Canadian Mortgage Trends article, click here.