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Interest rate rise

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AbbottStu | 05 Jan 2015, 04:17 PM Agree 0
Interest rates could rise this year, which affects the cost of borrowing. If it rises, what kind of things can I do with my property or finances to avoid any financial gridlock as I continue to expand my investment profile? I am worried about the residual effects of a possible increase. Suggestions, thoughts?
  • StiverH | 13 Jan 2015, 12:05 AM Agree 0
    Hello AbbottStu, Do you have any mortgages coming up for renewal in the next 1-3 years? Are they fixed or variable rate?

    If you are looking to protect yourself against unexpected interest rate increases you can ensure you do not get caught off guard by refinancing earlier and locking in your rate. This will allow you to have confidence in managing your cash flows.

    Please feel free to reach out if you have any other questions.

    Stiver Hudson - Mortgage Professional

  • talkcondo | 22 May 2015, 04:48 PM Agree 0
    I highly doubt that there'll be a huge jump - I'd imagine there being a gradual increase. I don't think the government want to shock the market, and in-turn shock the economy.

    On a more personal level, I am quite bullish on the markets and when rates do increase, I see it as more of an opportunity than a problem -- in our low-rate situation, there's a very strong rental pool. My thoughts are that if rates increase, affordability will become more difficult and so the rental pool will only increase as a result.

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