- Barbara Singh
It is in your best “Interest” to Take Advantage of Low Mortgage Rates
We are still not out of the woods when it comes to the Covid-19 pandemic. Since the pandemic became a reality for Ontarians, many have had to make job sacrifices while altering lifestyles to deal with the realities of Covid-19. Stay-at-home orders, curfews, and the reduction of work hours have hit many Ontario homeowners hard in the pocketbook. However, household expenses remain an ongoing concern despite reduced hours, more time spent at home, and the high cost of owning a home.
There have, however, been some positive economic spinoffs from the pandemic. Some sectors have not seen negative impacts. Rather, the opposite has happened. One such sector that has seen no sign of slowing down and has made substantial gains is the Ontario housing market.
In Ontario, home sales increased nearly 13% from this time last year. The average house selling price as of 2020 reached $648,100 in Ontario, which is a substantial increase from this time last year. In Toronto, which remains one of the epicenters of the booming housing market, the average house price reached a February 2021 high of $914,890 for a single dwelling Toronto property.
The average house price is expected to continue to rise throughout 2021. Real estate experts in Toronto predict that there is no slow down in sight in the housing market fueled primarily by historically low mortgage rates encouraging buyers to purchase properties as well as to renew or refinance.
Look at Different Mortgage Options to Utilize Such Low Mortgage Rates
As an Ontario homeowner, your greatest asset is your home. Equity has built up in your property. This equity can be tapped into to help ease some current financial pressure during this uncertain time. Several options may be open to you depending on your unique set of financial circumstances. You may be looking to consolidate multiple monthly debt payments, take out a home renovation loan, second mortgage, or home equity line of credit (HELOC).
Mortgage interest rates are historically low at the moment. These rates are expected to remain low throughout at least the first half of 2021. There is no better time to look at different mortgage options secured against your home.
1. Mortgage Renewals - If your mortgage is up for renewal or perhaps you are in the process of renewing, you can take advantage of the current low mortgage rates to negotiate different mortgage terms. If perhaps you have a variable mortgage, you may want to switch to a fixed 5-year term mortgage; this will enable you to lock in rates that have never been lower.
2. Debt Consolidation - Several debt consolidation options are open to Ontario homeowners. You can for example look into the option of a Home Equity Line of Credit (HELOC). By tapping into the equity in your home, you will have access to a revolving line of credit secured against your home. As you pay it down you will have more funds to draw on as it works like other lines of credit, (revolving credit).
3. Refinancing Principal Mortgage - If monthly mortgage payments have become tight it may be advisable to explore the prospect of refinancing your primary mortgage on your home. Refinancing will allow you to save money in the long run by lowering monthly mortgage payments by getting a lower interest rate and still be able to tap into your home equity. You will also be able to pay less in interest over the long term by locking in low refinancing mortgage rates.
I Can Help You With Different Mortgage Options
Regardless of your immediate financial needs, I will be able to discuss your details and provide you with the option that is best for you and your situation. There are many mortgage options open for Ontario homeowners and for those homeowners to take advantage of the historically low rates. You can help to eliminate household debt, free up funds for immediate financial concerns and tap into your valued home to make this happen. Do not hesitate to contact me at your convenience to discuss your mortgage needs.