Is it Time to Lock into a Fixed Rate Mortgage?


This is Walter in his pride gear; Walter and I agree everyone deserves to be loved, to live as they wish and be who they want to be.  NOW that I have your attention – Please read. I sent this out a couple of weeks ago, but I don’t feel it was read. The information in the newsletter is really important to those with Adjustable/Lines of credit or variable rate mortgages. 

Please Read. 

I’m having more and more conversations with clients that revolve around monthly affordability. Many people use their credit cards or lines of credit to supplement their income and cover living expenses. 

Updated: As the Bank of Canada continues to raise interest rates, the affordability of living in Canada is becoming an increasing challenge for many households. Despite my previous advice that these changes were just short-term, I’m now concerned that this may not be the case. Inflation is on the rise, triggering rate increases, further increasing inflation. This cycle is only made worse by the large immigration numbers – which we need; I am all for immigration; we need so many more people to choose Canada as their home; the only issue is, where will they live? We already don’t have enough housing for those living here, which is a major concern. It’s becoming increasingly clear that we need to build more homes and fast. I’m worried that the challenges of inflation and interest rates will continue to plague us for much longer than anticipated.

As a result, I strongly recommend that you consider a fixed-rate mortgage as the more certain path for this cycle. Be more prudent about your future finances, and make sure you can keep a roof over your head.

If you are struggling with managing your mortgage payments, high-interest credit card debt, or lines of credit, you are NOT alone. And I’m in the boat with you as I watch my dollars shrink and have to make more challenging choices when staying within my budget. It’s hard. 

As you know, I have always supported the adjustable rate mortgage as an interest-saving tool, but we are once again in uncertain times, and who knows for how long. With the rising cost of living and the Bank of Canada expected to increase its prime rate in June due to creeping inflation, it might be worthwhile to consider restructuring your mortgage and using a fixed rate for this cycle. 

Why? Why Now? 

Haven’t we lived with enough uncertainty? The Bank of Canada is looking at another increase in July. 

The Security of Fixed Mortgage Rates 

You might be struggling with your adjustable-rate mortgage payments. A fixed-rate mortgage is an attractive option for people who prioritize financial stability. This means that the interest rates will remain the same throughout the loan term, which helps you budget and prepare for your mortgage payments. However, locking into a fixed rate also means avoiding market fluctuations, and the unpredictability of the Bank of Canada increases. 

You have options. 

  1. We can transfer your mortgage to a new lender with a low fixed rate; there is no cost to you outside of the penalty for early termination – the lender will allow me to capitalize up to $3000.00 of penalty into the new mortgage. 
  2. Early renewal with the existing lender – each lender is different. 
  3. Convert your existing mortgage to a fixed rate – each lender is different. – call me. 
  4. Refinance: If you have high-interest credit card debt or lines of credit that are near or over the limit, refinancing your mortgage can be an effective solution. Restructuring your mortgage can consolidate your debt into one payment and create better cash flow while we are in this high inflation period. In addition, your pocketbook will benefit from a lower interest rate. Remember: If your limit is $5000 and you have a balance of $4000.00 or greater, you may hurt your credit score. The rule of thumb is to keep your balances below 50% of the limit.

Call me!

Send me your mortgage statement, I can run some numbers and give you detailed information to help you make an informed decision. 

There is a link in my signature where you can choose a time and day that work for you. Please email or text me if you can’t find a time that works for you. I can usually make something work. 

With kindness, 


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