The advantages of a rate hold.

Hi everyone!  Hope you are all getting ready for a great holiday season!  It’s been quite a year.  Lots of changes to mortgage rules, the U.S. government talking about beginning to remove their quantitative easing of the bond market, pipelines, rail disasters, and so forth.  Of course, this all trickles down to you as a homeowner or potential homeowner.  For example, the U.S. government is again advising they will be removing some of their stimulus to the bond market.  What this means is the fixed term interest rates (such as the 5 year term most commonly used here in Canada) may begin to rise again.  There is a strategy you can use to limit your exposure to rate increases – especially if you are thinking of purchasing, refinancing or renewing your mortgage in the next 120 days.  It’s possible to obtain a rate hold which will secure your interest rate and protect you from any rate increases during the 120 day period.  I’d highly recommend doing this if you are planning to get financing or renewing your mortgage within the next 120 days.