I drive a mid sized SUV, a Nissan Pathfinder to be exact. As I have 3 kids and a large dog, we needed the room. However this past weekend I filed it up and for the first time ever it cost me $117 to go from low fuel light to full. While not that long ago in the heigh of the pandemic it cost less than $50 to fill it.
It’s not just gas that is going up, food, new and used vehicles, clothes and what in all the headlines is the cost of real estate. While the April CPI index has not been released yet, I think it may be safe to say that we may be in for another month of high inflation. As a result the bank of Canada has been increasing the overnight lending rate which then increases the prime rate. The next meeting scheduled for June 1st will most likely bring another 50 basis points increase.
All these rate increases are supposed to curb spending, therefor reducing demand which brings down inflation. However a lot of the recent prices increases have been due to the pandemic which is still going strong and the war in Ukraine that shows no sign of stopping. So there is no guarantee that these measures will have their desired effect.
The first time in 10 years we have 5 year fixed mortgage rates above 4%. So if you like the stability that the fixed rate will provide then it will be perfect for you. For me I like the flexibility of the variable. Know your risks, and choose a product that will help you sleep easy at night.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here