What comes first, the search for a house or a bank pre-approval for a mortgage?  

Especially in today's unstable financial situation, it should be the mortgage pre-approval that comes first.  All indications over the past couple of months predicts the Bank of Canada will raise the over night rate sooner than July 1 as originally predicted.  However, the improvement in the economy caused the cost of borrowing for the financial institutions to increase resulting in an increase in the 5 year fixed term mortgage rate a few weeks ago.  Today, however, the major financial institutions have lowered the 5 year fixed rate for the second time in the past week or so.  What does that mean?  Will interest rates not be going up as early as June as previously predicted?  Will they go up at the beginning of July?

It means that pre-approvals are just as important as ever.  If you have a mortgage pre-approval you will have a guaranteed rate for the next 90 - 120 days (depending on the financial institution).  That means if the rates go up your rate is guaranteed for the rate quoted at the time of your pre-approval.  The best part is that if the rates do go down between the time of your pre-approval and the closing of your home, you will get the benefit of the lower rate.

If you are thinking of moving within the next 90 - 120 days, what are you waiting for?  Get out and get your mortgage pre-approval.

Uncertain about who to contact for a mortgage pre-approval.  Email me for a list of mortgage specialists in your area.