The importance of effective listening to your success as a broker + MORE Dec 16th

As expected, rates are starting to trend in a downward direction. This might make life easier for some homeowners. But for others, lower rates might lead to more questions than answers. What should I do next? How can I benefit? Should I get a variable rate and ride the wave? Or should I stick with fixed?

There are no easy answers – but here’s some info that might point you in the right direction.

The Current Landscape

Rates are down by around 0.40% from their high just one month ago. This is a nice reduction, and good news: it’s only the beginning. Rates are expected to drop much, much lower over the next couple of years. If you want to take advantage, a variable rate mortgage is the way to go. 

Many brokers spent the last year recommending short term fixed rate mortgages. But now that rates are dropping, the only mortgage products that stand to benefit are variable rate mortgages. Fixed rate mortgages are priced based on the 5-year bond yield. It’s variable rate mortgages that will make borrowing costs much more manageable much quicker…

As mortgage brokers look for ways to stand out in a competitive industry landscape, it’s increasingly important to consider the impact that clear and concise communication can have on service levels.

Mortgage interest payments have now soared nearly 90% since the Bank of Canada started hiking interest rates in early 2022.