Strategic Financial Planning for 2024

Leading economists anticipate that, should inflation align closely with its target range of 2%, the Bank of Canada may be inclined to reduce overnight interest rates by late 2024. The potential implications of this move are significant, especially for those considering property transactions in the upcoming year. Notably, this rate adjustment could impact nearly 20% of mortgages maturing in 2024.

For borrowers with conventional mortgages initiated with a down payment of 20% or more, there exists an advantageous financing option. They can diversify their mortgages into varying terms and product components, ensuring maximum flexibility. This strategy allows them to capitalize on potential lower rates. Additionally, some borrowers are leveraging lines of credit up to 65% of their home's value, given the flexibility to adjust their debt levels at will. Despite the elevated costs associated with lines of credit, those with the capacity for substantial mortgage prepayments—beyond the bank's standard 10 to 20% of the original mortgage amount annually—might find themselves in a more favorable financial position in terms of overall financing costs and debt repayment.

If you're interested in learning more about the mortgage pre-approval process, our mortgage broker, John Chrisanthidis, for expert guidance.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

✉️ [email protected]

☎️ 416-890-1365