As mortgage rates continue to hover in record low territory, a recent survey shows that dropping rates even further wouldn't necessarily encourage more debt*.
The survey concluded that more than 9 in 10 Canadians - 93 percent - said they wouldn't take on more debt obligations if the Bank of Canada cut interest rates.
If homeowners could refinance to a lower interest rate, the prudent thing to do would be to keep mortgage payments the same and redirect a greater percentage of the payments to go straight towards the loan principal. This way, the debt will be paid down faster, saving hundreds if not thousands of dollars in interest over the term of the loan. While the chart above shows that many homeowners understand this concept, actually working out the specifics of refinancing requires an in-depth look at your current mortgage situation, and an accurate calculation of any costs associated with re-financing.
Please call today for a no-obligation mortgage review to find out if there's a way for you to manage your loan more efficiently, and save you money!