If you’re renewing a mortgage, you’re about to save money Interest Rates are Lower Canadians who renew their mortgages within the next six months are more likely to receive a lower interest rate. This is also beneficial for the economy. “The Canadian Association of Accredited Mortgage Professionals says in its annual state of the mortgage market that the average existing rate in Canada for consumers with a mortgage due in first half of 2015 is 3.5%. Just 60,000 of the 140,000 people renewing in the next six months have a rate lower than 3.5%.” Also, renewing is more likely to be a positive event for both borrowers and the economy for the next year. “‘We have seen in aggregate that interest payments as a share of disposable income have been trending downward. The reduced interest payments also allow many to accelerate principal payments and/ or increase spending. Regardless this is a net positive for the economy,” said Benjamin Tal, deputy chief economist for the Canadian Imperial Bank of Commerce.” With lower rates, Canadians are working harder to pay down their mortgages. Some even chose to pay once every two weeks instead of once every month. This can reduce the amortization period by three years. Basically, now is a good time to buy a home and an increase in home sales is a positive for the economy. You can find the full article at the Financial Post.