| ||
This Month Three Things Worth Knowing Before You Sign AnythingHi there, Three things this month: what today's Bank of Canada rate hold means for you, a way to buy your next place without a pile of cash saved up, and a scam email making the rounds right now that I want you to spot. Let's get to it. | ||
Today the Bank of Canada held its key rate at 2.25% - the sixth hold in a row. Prime stays around 4.45%, so if you're on a variable rate or a line of credit, your payment doesn't budge. And if you're renewing off a rock-bottom 2021 rate, this is the year to plan for a higher payment - let's get ahead of it. Here's the thing: "no change" doesn't mean "do nothing." If you're renewing in the next six months, this is your window.
And don't just sign the renewal letter your bank mails you - that's their opening offer, not their best one. Before you renew, it's worth fifteen minutes to check whether you should renew or refinance. Sometimes rolling in other debt or pulling out a little equity beats a plain renewal. Call me first. Next decision after this one: September 2. | ||
Here's a curveball nobody warns you about. You agree on a price. The lender sends an appraiser. And the number comes back lower than what you agreed to pay. It's happening right now - regular homes in town, not just acreages. Say you agree to pay $500,000 and it appraises at $475,000. The lender lends on the lower number. That $25,000 gap? You cover it, on top of your down payment. It doesn't have to kill the deal. You can dispute the appraisal, renegotiate the price, or restructure the financing. But you've got to know before you're standing at the closing table. This is the kind of thing I catch early. After 25+ years, I've seen it plenty - and I'd rather flag it on day one than have it blow up on day 25 of a 30-day condition. | ||
Look - you don't always need a pile of cash in the bank to buy your next place. If you own a home, the equity you've built up can be your down payment. We pull some of it out, and it helps fund the next purchase. Moving up. Buying a rental. Helping a kid into their first place. A lot of people do it exactly this way - without draining their savings. The trick is the order of operations: the right lender, the right structure, timed so it all lands on closing day. That's my job, not yours to figure out. And if you're selling one place and buying another, there's a right sequence to it - get it wrong and you're scrambling. Ask me for the rundown before you list. | ||
| ||
If I've helped you with a mortgage over the years - whether that was last month or back when a $200,000 mortgage felt enormous - I'd be grateful if you'd leave a quick Google review. It takes about a minute, and for a one-person shop like mine, it genuinely matters. It's how the next family finds me. And if writing isn't your thing - just forwarding this email to someone who's renewing or house-hunting does the same job. Thank you. | ||
Talk soon, Shawn | ||
SHAWN SELANDERS Mortgage Broker | Mortgage Architects 📞 403-703-6847 (call or text) 📍 614 High View Park NW, High River, AB T1V 1E5 | ||
RECA-Licensed Mortgage Broker | 25+ Years Experience | Serving Calgary, Okotoks, High River & Southern Alberta Brokerage: Mortgage Architects | Rates and programs change - confirm current details with me. O.A.C. E.&O.E. |
Bank of Canada Holds Rates at 2.25%: What It Means
