Canadian Interest Rates to Rise Soon

**MomToTwoBoys** · 04-23-2010, 03:17 PM

I got a phone call concerning the mortgage and its impending renewal. We decided to stay with our current company, ResMor Trust Company, after a discussion with both the mortgage consultant and DH.

We were offered the following rates:

1 year fixed - 3.29%
3 year fixed - 3.89%
5 year fixed - 4.39%

I let the consultant know that considering rates were going up and we wanted to keep our renewal rate lower or at par with what we have now, we wanted to refinance early. He said it was possible and gave me a way to contact him to get the ball rolling.

The days of cheap credit thread touched on it slightly and they have stated that rates will rise within a couple of months. If anyone is looking to refinance soon, now is the time to do it.

We're sticking with the 5 year fixed, which is 1/10th of a percent lower than what we pay now. The reason we didn't go with a 1 or 3 year fixed rate was because we knew the economy would still be rough for another few years. This gives us some breathing room for later on down the road.

The best part?

We won't be paying higher than 4.39%. Our monthly payments will be adjusted and hopefully, we'll end up with some more money in our pockets.