For any Canadian on the search for a house right now, the chances of saving money are slowly slipping away if they do not move quickly.
We have recently received notice that the Bank of Canada has no longer any reason to uphold its commitment to keep the overnight rate at the all time low of 0.25%. They could increase the rate as early as June 1st, 2010.
With that said, rates are expected to increase, and in the past few weeks we have already seen banks increase their rates twice. The rate increases are have been around 0.15% – 0.25%.
Now, as I said the chances of saving money are slowly slipping away; the longer you take to purchase a house and lock in a mortgage rate the higher the chance the rates available will end up costing you more once you pay off your home, as they will be higher interest rates available to you.
You may want to consider getting a pre-approved mortgage as soon as possible, which will allow you to lock in a rate for 90 days and from there have plenty of time to find the home of your dreams.
This is only my advice as to how one might want to approach the housing markets in the next few months.
You also have to consider that if the housing market does begin to cool off because of rate increases and other factors, you might be able to purchase a home at a cheaper price, however it is not certain that this will happen. It is a scenario, but what is certain is that rates are going to go up and if you want to save money, lock in a rate today.