With the prime rate at 3.70%, now is the time for locking in early renewals.
MONTREAL, June 01, 2022 (GLOBE NEWSWIRE) — With the news of another impactful interest rate hike from the Bank of Canada this morning, many are left wondering what this means for current homeowners in Canada. nesto has an answer: renew or refinance. The online mortgage company announced this week that it will now offer the longest rate-hold period offered in Canada, 150 days.
Interest rate volatility is at an all-time high–the average changes documented in nesto’s proprietary data report land at 11 per month compared to just a 2 per month average in 2021. It’s clear that rate changes will continue through summer 2022.
“With the average payment on a $500,000 fixed rate mortgage increasing by $375 and by $213 for a $500,000 variable rate mortgage in the last 6 months, now more than ever is the time for homeowners to lock in their lowest available rate today to avoiding paying for any further increases,” Malik Yacoubi, nesto’s CEO said. “This is exactly why we offer a 150 rate lock-in period. It gives everyone peace of mind with the current market and ample time to consider debt consolidation to improve cash-flow among other savings opportunities.”
To curb the impact of rate hikes and inflation, locking in rates for refinancing and renewing will allow consumers a pathway to savings down the line.
About nesto: nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish. The company empowers Canadians with tools, guidance, and most importantly the confidence to make an informed decision for the most important financial commitment of their lives. With technology, nesto seamlessly offers the best suited mortgage options so that Canadians can secure the best mortgage and save thousands in interest – no negotiation needed. nesto’s mortgage experts provide unmatched support along the way. For more information, visit nesto’s website.
Contact: Alivia Massimillo