Global News – higher lending rates affecting home owners – October 26, 2022

In this news hit on Global News Halifax, Clinton Wilkins speaks to Ross Lord about borrowers’ finances during this climate of higher lending rates. For some, it’s making finalizing a mortgage more complicated.

Don’t feel like watching the video? Check out the transcript below.

Transcript:

Clinton Wilkins: [00:00:00:12] Excellent. You can sit wherever you like.

Ross Lord: [00:00:03:00] Rising interest rates are making meetings like this one to finalize a mortgage agreement a bit more complicated.

Helping borrowers navigate their mortgages

Clinton Wilkins: [00:00:09:01] So what day of the month do you want your payment to come out on?

Ross Lord: [00:00:12:26] For home buyer Bruce Herron. The hardest part came beforehand. He already locked in his five year term.

Bruce Herron: [00:00:18:18] I think there’s always a pause when interest rates go up either 50 basis points or where we’ve come from, from 2 to 3% ish.

Ross Lord: [00:00:27:26] Although he prevented hundreds of dollars extra every month in mortgage payments, many other homeowners will be hard pressed.

Inflation is impacting everyone

Clinton Wilkins: [00:00:34:24] I see the clients that are starting to be impacted by inflation, the clients that might be in an adjustable rate mortgage, that their payment went up, Even today, with the Bank of Canada.

Ross Lord: [00:00:42:17] Finding the money by cutting costs elsewhere is harder than ever, with homeowners still facing double digit price increases for food and other commodities. Offsetting the higher rates, buying a house costs less overall than earlier this year. And although interest rates are rising in historical terms, they’re still fairly low. Nothing like the extreme highs in parts of the 1980s and lower even than most years before or since.

Some say rates will continue to go up

Angela Calla: [00:01:08:20] Yes, I certainly would not be banking on the Bank of Canada slowing things down.

Ross Lord: [00:01:13:23] If interest rates keep rising. Homeowners whose locked in rates are up for renewal in coming months could also be in for an eye opening. Ross Lord, Global News, Halifax.

If you have any questions, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.