Photo by D koi on Unsplash
RIDING OUT A BY MELANIE ROBITAILLE, SR. STAFF WRITER & GRAPHIC DESIGNER
The near zero interest rates enjoyed across North America have jumped several basis points now, some of the fastest hikes seen since the 1980’s, making affordability now one of the greatest hurdles for many homeowners across the continent. While a mortgage is already easily one of the largest debts most homeowners carry, industry experts suggest these moves were more of a rate correction. Arrears issues haven’t been as bad as some initially predicted due to the selling power homeowners had during the recent market frenzy; power which provided equity in the form of extra cash, an opportunity that’s now shifting with the market. “You hear the phrase, ‘marry the home, and date the rate’ a lot right now. The rates aren’t going to be forever. And honestly, during the spring and summer things start to pick back up. It's not like it was before where you had to settle for the home because you just wanted the rates and the payments,” explained Branch Manager for PRMI Mortgage Company and Co-Franchisee, Jim Hyatt Jr., of EXIT Results Realty in Maryland. He sees how many regret what they had to do in order to compete mere years ago, and how they feel they’re overpaying for it now. Canadian clients had the benefit of being able to port their mortgages, meaning those who locked in at a fixed lower rate, had the flexibility to move and take their portable mortgage and rate with them to their new home, something Jim said isn’t unfortunately available south of the border. Another major difference in the U.S. is the length of time you lock in for, 15- or 30-year terms to be exact, whereas in Canada, terms are much shorter for three or five years, similar to the American commercial sector. Either
“You hear the phrase, ‘marry the home, and date the rate’ a lot right now. The rates aren’t going to be forever. And honestly, during the spring and summer things start to pick back up. It's not like it was before where you had to settle for the home because you just wanted the rates and the payments.” JIM HYATT JR., FRANCHISEE
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