, the Country’s Leading Private Mortgage Professionals, Weighs in on Rising Mortgage Rates Following Summer of Record Lows

Toronto, Canada, December 18, 2015 – , the leading low-cost, private mortgage solution provider in the country, weighs in on mortgage rates ticking higher and comments on how any rate hike could negatively impact homeowners, leaving them financially stretched.

“Canadian mortgage rates are on the rise after a summer or record lows,” says Bob Aggarwal, President of “While this trend is expected to help cool Canada’s hot real estate market, especially in Toronto and Vancouver, it could also leave mortgage holders stretched and unable to meet their financial obligations.”

Canadian mortgages have rebounded off their record summer lows in anticipation of an improving economy. Five-year fixed-rate mortgages have climbed between 10 and 15 basis points since the summer; a basis point is 1/100th of a percentage point, meaning a 10-point increase translates into a mortgage rate going from 2.55% to 2.65%. At the same time, variable-rate fixed mortgages are also seeing their first major increase since 2012. (Source: McMahon, T., “Mortgage rates tick higher as banks reverse course on ultra-low rate trend,” Business News Network, November 25, 2015;

“On a 25-year, $400,000 mortgage, the $1,800 a month payment increases to $1,820. That might not seem like a lot, but it represents a reversal to the downtrend which has helped fuel the Canadian real estate market, especially in 2015, when the Bank of Canada surprised the markets when it cut interest rates twice, in January and July,” Aggarwal adds. “This was responsible for boosting resale home prices in Canada by more than four percent year-over-year.”

Over the long run, rising interest rates could help cool the housing market over the next 12 months. At the same time, rising interest rates could send housing prices higher over the short-term as first-time property buyers come in off the sidelines in an effort to take advantage of the still-low mortgage rates.

“Mortgage rates remain near record lows, but they are inching higher. Instead of jumping onto the property ladder simply to secure a low mortgage rate, homeowners still need to figure out whether they can afford to buy a home in a higher rate environment,” Aggarwal concludes. “Unfortunately, one in six Canadians are unable to handle a $500 increase on their mortgage payment.” is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns. To learn more about, visit the web site .

Bob Aggarwal

Mr. Aggarwal was one of the original founders of, one of the largest volume Mortgage Brokerage houses in Canada. Mr. Aggarwal has over 12 years of experience in Brokerage and Lending in the small and medium business sector, as well as experience and expertise in the residential housing market. Since the inception of, Mr. Aggarwal has been instrumental in developing the operating platforms, and policies and procedures which have guided the organization to date.


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