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What You Need to Know About Edmonton Mortgage Interest Rates 2022

Mar 31, 2022

Home 9 Buy/Sell 9 What You Need to Know About Edmonton Mortgage Interest Rates 2022

Canada’s prime rate was raised from 0.25% to 0.5% on March 2nd 2022 with further rate increases expected throughout the year. Now that spring is here, these rates are officially in place. With a higher interest rate, borrowing money will be more expensive. This will include lines of credit, car loans, and most importantly to discuss, mortgage rates. For Edmontonians who have a fixed mortgage rate, you’re in the clear as this won’t affect your mortgage payments. That is, until it’s time to renew your term. However, those who have a variable-rate mortgage or those looking to buy a home, are going to see the effects of the higher interest rates more immediately.

What You Need to Know About Edmonton Mortgage Interest Rates in 2022:


, What You Need to Know About Edmonton Mortgage Interest Rates 2022

How Will the New Interest Rates Affect Home Buyers in Edmonton?

Unfortunately, if you were waiting for home prices to decrease, you’ll be disappointed to find out that the new interest rate will mean higher mortgage rates. However, this isn’t stopping some home buyers. After all, these interest rates are still lower than pre-pandemic times. The window to obtain a lower interest rate is getting smaller which means this may be the best opportunity to buy a home in 2022.

What Are My Best Options?

  • Overall, make sure you’re financially ready to take on a mortgage. You can do this by talking to your financial advisor and discussing what your options are.
  • Get a pre-approval for a mortgage. This will help you negotiate better when an offer is made.
  • Do some research around the neighbourhoods in Edmonton. Seeing what’s already listed will give you better insight into the Edmonton housing market and what neighbourhood suits your lifestyle. Check out our listings.

Clubhouse Group can help you find a home for your budget. Discuss your options today.

, What You Need to Know About Edmonton Mortgage Interest Rates 2022

How Will the New Interest Rates Affect Borrowers?

If the current mortgage rate is lower than when you received your loan, you’re in luck. Now would be a good time to refinance your mortgage. This means lower monthly payments. Keep in mind that not everyone qualifies for a mortgage refinance. To qualify, your loan-to-value ratio must be lower than 80%.

For those who currently have a variable-rate mortgage, the new interest rates will mean a higher amount of your payment to be assigned to interest rather than the principal amount (the principal is the amount of funding for your home loan while interest is the money paid monthly for use of the loan).

In summary, since interest rates are predicted to continue to rise throughout 2022, borrowers should consider refinancing their mortgage sooner rather than later.

Going Forward

Edmonton mortgage rates throughout 2022 are likely to continue to rise which will require evaluation for buyers and borrowers. Talking to a professional real estate agent will give you the best advice on navigating the Edmonton housing market. Maximize your investment and book a consultation with us today.