For those in Variable Rate Mortgages and those interested.
As you recall, I sent out a prediction from RBC economists forecasting a 0.25% rate increase in September and an additional 0.25% increase by year end.
CIBC has gone a bit further.
CIBC forecasts the likelihood of the overnight rate getting to 2% at the end of 2011. That translates to a Prime Rate of 4%, which is approaching pre-economic crisis levels of 4.25% - 4.5%.
It would be wise to start making adjustments if you have been making mortgage payments at the current interest rate rather than making a larger payment than required. I hope all of you have set up an increased payment with your lender as I had advised in the past, but just in case you have are accustomed to your low interest rate and payment, prepare now for the increases that will be coming.
Raymond MAASKE,BBA, CCC, ACRE, ATM-B
Summerland & Penticton, Okanagan, BC
Website: http://www.HomeStarRealty.ca
E-mail:raymond@HomeStarRealty.ca
Phone:250.488.8764
"Oh by the way... I'm never too busy for your referrals"
Appreciated your update report!