Why areCanadians consideringrefinancing in 2022?

The last two years of the pandemic have significantly shifted the economic landscape of the real estate industry in Canada.

While the prices of homes have seen dramatic increases and decreases, so too have mortgage rates.

These monumental economic shifts haven’t only been seen in the real estate industry – but also in other markets – as we’ve witnessed the impact of inflation stretch widely across Canada.

Inflation has been in the national dialogue heavily in 2022 – with the cost of living, gas and food reaching record breaking highs.

The beginning of the pandemic saw Bank of Canada mortgage interest rates plummet as the Canadian economy took a significant hit.

While the decreased mortgage rates have been ideal for Canadians with Variable-Rate Mortgages, an exponential rise in inflation is of concern to many homeowners with the inevitable hikes in interest rates coming from banks in the foreseeable future.

While it may seem obvious that homeowners and mortgage brokers will likely shift their focus towards choosing Fixed-Rate Mortgages, many people are choosing to Refinance and deepen their variable rates while they’re still low in early 2022.

Homeowners have the option to try and take advantage of the approximate 1.50% variable rates which would make it easier to then absorb the 3 or 4 inevitable Bank of Canada interest-rate fluctuations before they’re back to that lower rate.

When you refinance, you’re essentially reorganizing your debts.

By consolidating your debt into one source, and thus adapting to the changing economic landscape, you’re able to focus your energy on maintaining one loan with a lower interest rate.

There’s no charge for a mortgage review when we work together, so you have nothing to lose when setting up a free consultation to discuss your options. Refinancing allows you to free up your cash flow. We’re able to manage any unsecured loans or debt on high interest credit cards by consolidating your debt.

When considering the best method of reorganizing and consolidating your debt, you may be pleasantly surprised to learn that refinancing could be the right option for you.