March 29, 2012
BMO study finds mortgage rate increase will hamper Canadians
Interesting article regarding a survery completed by BMO regarding affordabliity on increased mortgage rates.
The survey found that 43% of Canandians would "hamper their ability to pay" with an increased rate.
Alberta, with the least concern came out at 73% stating it would not affect their ability to pay.
"Based on the current BMO rate of 2.99 per cent for a five-year mortgage, the monthly payment on a 25-year amortization would be $1,654.57. If that 2.99-per-cent rate went to 4.99 per cent, the monthly payment would climb to $2,033.63. While the BMO rate expired Wednesday and other banks have moved to end their rock-bottom discounts, there are still lenders offering less than three per cent for a five-year mortgage."
With rates being as low as they are, one can only expect them to rise - question is, how much and when.
Read full story:
Food for thought....