VANCOUVER (NEWS1130) - With the Bank of Canada hiking interest rates earlier this week, some people may be wondering if they missed the boat on getting a good deal on a home. However, experts say you can still get a good deal.
The easiest thing to do is to put down a larger down payment, which will help you pay less interest over the life of your mortgage -- or make payments weekly or bi-weekly.
Bank of Montreal's Carolyn Heaney says within in the next couple of years we'll see more increases in the prime lending rate, so people may want to consider a fixed rate mortgage. "Let's say we take an average 30 year and reduce it to 25, how much interest can we potentially save off on a $200,000 mortgage? The answer to that is roughly around $53,000."
Heaney explains another thing people can do is cut their amortization by five years, from 30 to 25. She says potential homeowners can save over $50,000 on a $200,000 mortgage.
She adds people also need to stress-test their budgets by using a mortgage payment based on higher interest to see if they can handle it.