How Will Rising Interest Affect Prices in Kelowna?

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I received a question from a client about what might happen with interest rates this year. This is a great question, and I think everyone needs to know the answer.

I do believe that the prime rate will be relatively unaffected in 2016. A lot of our Canadian growth is derived from the energy sector, which has been struggling lately.

However, the banks will be slowly ratcheting up their mortgage interest rates. You can expect to pay 3% on a 5-year loan. Many of the discounted rates that were available in the past are no longer being offered.

We've seen demand remain strong even with these slight increases. I don't expect the lending rate to increase much further, because our economy relies on cheap borrowing.

Ultimately, I see mortgage rates staying very close to where they are. This will not affect your affordability very much. However, if you're buying, I recommend that you do so quite soon before rates increase any further.

If you have any further questions, please don't hesitate to contact me. I look forward to hearing from you!