What You Need To Know About Vancouver Mortgage Rates.

If you're in need of information about Vancouver mortgage rates, here's how to save time, money and headaches. The three things we'll cover include what things affect the mortgage rate, how the economy in Canada can affect rates and whether you should go with a fixed or variable rate mortgage. By following this guide, you'll be better informed and able to make the best decision for your particular circumstances.

So what actually affects rates?

There's one institution that basically has full control over the banking and finance market. The bank of Canada and the financial instruments that it issues make up the bulk of what determines the rates. There are other factors but this is the single biggest one. To best predict mortgage rates, look at what's happening with the yield on bonds being issued by the bank. As the interest rates start to trend either up or down, mortgages will follow. Now that you have a basic idea of the main thing that determines rates, let's look at how the economy plays a role.

What is the current rate of the economy and how does it affect rates?

Although not the major determining factor, the health of the economy does play a role in mortgages. The economy in Canada is very solid, especially compared to many other parts of the world. This will most likely result in a very slow but steady rise in rates over time. There are exceptions but, generally speaking, a solid and improving economy will always cause interest rates to inch their way up. Now that we've covered the economy and its affects, lets touch on the pros and cons of fixed versus variable.

Is it better to chose variable or fixed at this time?

Your choice of mortgage financing will always be determined by the specific details of your unique situation. Because of the expected continuance of rising rates, generally speaking fixed rate mortgages are the way to go. But even if you believe that Vancouver mortgage rates will go up, a variable interest loan may make sense.

Now that you know what affects rates most, the impact the economy has on things and ideas around choosing fixed or variable, you're now better able to make an educated choice.