Capital region homeowners consider locking in after interest-rate hike | Times Colonist

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Josh Ray is accompanied by his dog, Harley, outside his home in Saanich’s Glanford area on Wednesday. Photograph By DARREN STONE, Times Colonist

First-time homebuyers and owners about to renew their mortgages are nervous about the first benchmark interest-rate hike, a Victoria mortgage broker said Wednesday.

The increase, the first in nearly seven years, might prompt some people to lock in their mortgage rates, Colleen Flynn of Select Mortgage Group said. “It’s a concern for people. They are saying: ‘What’s this going to mean for me?’ ” she said. “I think more people are locking in to be cautious.”

Flynn said she’s also getting calls from homeowners who want to renew their mortgages early.

The Bank of Canada raised its key interest-rate target to 0.75 per cent from 0.5 per cent on Wednesday, prompting the five big banks to raise their prime rates a quarter of a percentage point. At the Royal Bank of Canada, that puts the prime rate at 2.95 per cent, up from 2.7 per cent.

Economists expect a gradual cycle of rate hikes amid rising confidence in the economy and projected growth.

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Applying for the BC Home Partnership Program into 5 EASY STEPS!

BC Home Partnership

5 Steps to Your Application

 

  1. Get a pre-approval from your mortgage broker.
  2. Apply to the Program and receive confirmation of eligibility.

The BC Home Partnership applications takes about 15 minutes to complete and about 5 business days for confirmation. Supporting documentation is as follows.

Provide one of: Canadian Citizenship Card, Permanent Resident Card (must have PR for at least 5 years), or Canadian Birth Certificate.

Also one piece of Government ID, proof of income by way of Notice of Assessment and the pre-approval from your mortgage broker.

  1. Find your home – make an offer “Subject to Financing”.
  2. Apply back to the program and lender with your accepted offer. This should only take at the most 2-3 days.
  3. Upon funding, the lawyer/notary will register the loan as a second mortgage.

 

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