Money Matters: Rates are going up

What goes up must come down. While we here is Canada have been spoiled with almost free money for the past two years. The party must come to an end. The powers that be are talking about raising the interest rates to cool the overzealous housing bubble. Most people think raising the rates will be bad thing for the economy but in truth if I ever learned anything in my economics class its that a bubble is bad in the long term. Look south.

This is truly the time to lock in a lower fixed rate and if a variable rate is what you have, you might consider changing the structure of your mortgage to go for a 3 or 5 years fixed. You can even get some pretty good 10 year locked in rates. With the way the bank of Canada is putting out reports we might be talking about a rate of 4-5% by next year. right now they are 3-4%.