Low Mortgage Rates and Home Renovations
If you look at the big picture of, say the last 40 years, mortgage rates are pretty low. For example, at the end of 1981, average five-year rates peaked at over 21.4 percent. Today, in contrast, five-year published rates are around five percent.
So, the question presents itself, is now the right time to do that dream home renovation that you’ve been waiting for?
The answer is maybe. Or probably.
Historically Low Mortgage Rates
If you look at the past 30 years, rates are historically low. Could they go lower? Yes, but not by much. They could, however, go up by a lot.
Mackenzie Gartside, President of Mackenzie Gartside & Associates, Mortgage Brokers on Vancouver Island, said that she is “advising clients to have their applications prepped (updated) and ready for submission. Rates are changing on a daily basis, so, having your application ready to submit means increasing your chances of securing a possible rate special.”
Mortgage Rates Amidst COVID-19
In response to COVID-19, The Bank of Canada lowered it’s key rate to 0.25 percent recently, but mortgage rates did not go down. In fact, they went up.
So, how much mortgage rates can or will go down or up is debatable.
Negotiation and Home Renovation
The good news is that so much of the economy is suffering right now, for those with money to spend on home building or renovations, they may be in strong position to negotiate.
We say that as soon as the stay-at-home order is lifted, projects are going to take off, and every builder is going to be like a one-armed paper hanger. We advise getting your lending ducks in a row and be ready to pull the trigger quickly.
If you are considering a large renovation project in the Vancouver area, please contact us sooner, rather than later. We can help you renovate your home to achieve exactly what you want.
Best Builders has been renovating older homes and building new ones for over 15 years. They are a multiple-award-winning builder that brings fine craftsmanship to projects, turning dreams into reality, in North Vancouver, West Vancouver, and the Greater Vancouver area.
If you have any questions about this article or would like to talk to us about your home project, please call us at (604) 943-2378 or email us at firstname.lastname@example.org.