MONTREAL, June 15, 2022 (GLOBE NEWSWIRE) — This past Monday marked another step away from the low rate era experienced by the Canadian housing market: Fixed rates have increased to a new recent high, leaving in its wake a flurry of nervous homeowners. This news contrasted with the data shown in nesto’s latest mortgage report, which sparked sentiments of optimism: new home prices are on the decline for the first time since 2020 ($710,000 vs. $720,500 in Ontario, $400,000 to $380,000 in Quebec), and homeowners embrace house hacking to offset mortgage payments.
In what seems like a split market, one where homebuyers have signs of hope to purchase (thanks to lower prices) and homeowners have growing concern (due to higher rates), nesto opts to find a balance for the latter group. The online mortgage company is extending the ability for homeowners to lock in today’s low rate for 150 days (versus the market norm of 120 days) – to aid in peace of mind for those due for a renewal or with a pending purchase.
“nesto’s 150-day rate hold provides homeowners or soon-to-be homeowners with extra interest rate security and time to act at a time where that security may be hard to find,” says Malik Yacoubi, CEO and Co-Founder of nesto, “For those that renew an existing mortgage in November, your time to act is now. Over the first 14 days in June, you could have lost the equivalent of $1,000 in interest costs over the life of your mortgage* with each day you waited to lock in a rate.”
*Based on a $500,000 mortgage amortized over 25 years with comparison rates
About nesto: nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish. The company empowers Canadians with tools, guidance, and most importantly the confidence to make an informed decision for the most important financial commitment of their lives. With technology, nesto seamlessly offers the best suited mortgage options so that Canadians can secure the best mortgage and save thousands in interest – no negotiation needed. nesto’s mortgage experts provide unmatched support along the way. For more information, visit nesto’s website.