Lacrosse in Boston!
  
My oldest son has been looking forward to this trip for many months! Playing in the Heritage Cup field lacrosse Tournament in Boston! Playing field lacrosse and attending the NCAA Div 1 Mens lacrosse semi finals and finals was definitely on Jax's bucket list. Was a great trip for us! Lots of lacrosse, lots of good times!
Will the Bank of Canada reduce it's overnight rate on June 4th?
The consensus forecast for the Bank of Canada (BOC) rate is a hold at 2.75% for the remainder of 2025, with a potential for further rate cuts in 2026. However, some forecasts suggest two more 0.25% cuts by the end of 2025, bringing the rate down to 2.25%, while others predict three cuts to 2.00%.
Once the headlines go up on June 4th, as always I expect to receive some phone calls asking about "the new mortgage rate of 2.75%" LOL! This is a common misconception because the news outlets assume everyone understands that the BOC "overnight rate" is the rate at which banks borrow money from the govt, and not the rate that the banks charge their customers.
Also the overnight rate only impacts variable rate mortgages. Fixed rates are determined by a different set of dynamics.
Understanding Fixed and Variable Mortgage Rates: What’s Right for You in Today’s Market?
When it comes to choosing a mortgage, one of the most important decisions to consider is deciding between a fixed-rate and a variable-rate mortgage. Both options have their benefits, but the best choice depends on your financial goals, tolerance for risk, and the current economic climate. Let’s break it down:
Fixed-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the duration of your term, usually 1 to 5 years.
Benefits:
Predictability: Your monthly payments stay the same, which makes budgeting easier.
Stability: You’re protected from interest rate hikes, providing peace of mind.
Ideal for Long-Term Planning: If you plan to stay in your home for a while or prefer financial consistency, this option is great for you.
Drawbacks:
Fixed rates are often higher than variable rates at the start of the term. You might miss out on savings if rates drop during your term.
Variable-Rate Mortgages
Variable-rate mortgages, on the other hand, have an interest rate that fluctuates with changes to your lender's prime rate.
Benefits:
Lower Initial Rates: Historically, variable rates tend to be lower than fixed rates.
Potential Savings: If interest rates decrease, you benefit from lower monthly payments.
Flexibility: Variable-rate mortgages often have lower penalties if you choose to break your term early.
Drawbacks:
Payments can increase if interest rates rise, leading to unpredictability. Not ideal for those who prefer financial stability or have a tight budget.
Let’s Talk About Your Goals
Every borrower’s situation is unique. Whether you’re a first-time homebuyer or looking to refinance, I’d love to discuss your options and help you choose the best mortgage strategy for your needs.
Feel free to reach out for a personalized consultation—I’m here to help you make informed decisions with confidence.
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