October 21
0 comments
Big things are happening in the world of finance, and they could spell good news for people wanting to buy a home or save money on their existing mortgage.
Here's the scoop: there are two big areas in the finance world—stocks and bonds. Stocks are like tiny pieces of a company that people can buy, and bonds are like IOUs that pay you back with interest. Both of these affect how much people pay for a mortgage.
Lately, the stock market has been like a roller coaster, going up and down a lot. When it goes down, people get nervous and start putting their money in bonds because they're safer.
Mortgages are what we pay when we borrow money to buy a house. The "rate" is like a fee we pay for borrowing that money, and it can change over time.
Now, here's the cool part: when lots of people start buying bonds, the price of bonds goes up, and the "interest" they pay (called "yield") goes down. This can also cause mortgage rates to go down. Why? Because banks and other lenders look at bond yields to decide on mortgage rates. Lower bond yields can lead to lower mortgage rates, meaning you might pay less each month for your home loan!
If you're thinking about buying a house or you already have a mortgage, these changes could be a chance to save money. If mortgage rates go down, you might get a lower rate on a new mortgage or change your current mortgage for a better one.
But money stuff can be complicated, and things might not stay the same for long. So, what should you do?
1.Keep Up with the News: You don't have to be a money expert, but watching or reading the news can help you know what's going on.
2. Know Your Money: Think about how much you can spend on a home or if you can save money on your mortgage.
3. Talk to Someone Smart about Money: This could be someone at your bank or a person who knows a lot about money stuff. They can give you advice that fits just for you.
All this talk about stocks, bonds, and mortgages might seem confusing, but the big takeaway is that what's happening could be good for homebuyers or homeowners. The key is to stay informed, understand your finances, and get advice from professionals when you need it. Happy house hunting, or enjoy saving on your current home!
As a homeowner, your property is likely one of your most significant investments. However, recent discussions around potential housing policy changes by our federal government, under the banner of “Fair Housing,” could alter the landscape of the Canadian housing market in ways that directly impact you. These changes are being driven by a push to
Read MorePersonalize Your Blog Reading ExperienceChoose your preferred content version The Essentials Comprehensive Advanced Introduction:The landscape of Canadian homeownership has been experiencing tectonic shifts, primarily influenced by critical decisions from the Bank of Canada (BoC) and regulatory authorities. Intended to steady economic scales and rein in rampant inflation, these choices have had complex repercussions, particularly felt
Read MorePersonalize Your Blog Reading ExperienceChoose your preferred content version The Essentials Comprehensive Advanced IntroductionIn the intricate ballet of economic strategies, interest rates have traditionally taken center stage, captivating audiences with their clear, sweeping impacts. But there’s a subtle performer moving in the shadows, one that the Bank of Canada is increasingly turning to in these
Read More