By Ian Ardill
I like to be proactive about things, but in this case, I am waiting until the last minute.
I am referring to the mortgage on my home. It is due in October. Waiting is the prudent thing to do, because I think that interest rates will continue to drop. In September, the Bank of Canada lowered them for the third consecutive month, which was good news.
“Should I be renewing my mortgage? What is a good rate? What is the outlook for interest rates?” These are the kinds of questions I am receiving from clients on a daily basis – and I am only too happy to provide advice customized to their unique situation (although I am not a mortgage broker, I do offer a point of view).
The good news is that the Canadian mortgage rate market is very competitive, putting downward pressure on prices. Dave McKay, the RBC CEO, recently described the Canadian banks as a “ruthless oligopoly,” and “ruthlessly competitive.” He also advised that the profitability of RBC’s mortgage business is just 1/3rd of what it used to be.
Even so, we must take a measured approach to making such important decisions, considering we are not in the driver’s seat when it comes to what the Bank of Canada, or the Big Banks, will ultimately do.
Want to talk about the optimal mortgage and interest strategy for you? Just drop me a line.
Ian Ardill, B.A., M.T.S.
Wealth Advisor
CEO, Ardill Group
Direct: 1 905 717 5698
Office: 1 905 907 7000
ian@ardillgroup.com
