Last week it was announced that inflation went up in December 2023. This may mean that the BoC will not lower Prime rate in the near term, most still expect a decrease sometime mid-year, fingers crossed. On the other hand, great news for fixed rates which have come down substantially in the last month. In late 2023, fixed rates were in the high 6% range with shorter terms over 7%. Today all fixed rates for 2-5 terms are less than 6% and hopefully will fall even more. This makes a substantial difference in qualifying borrowers for mortgages because as rates come down, so do qualifying rates which brings up affordability. Basically, this means you can qualify for a bigger mortgage today vs. last month! For now, variable rate mortgages are in the range of 6.45% with the prediction of reductions by 1-1.5% this year. If you or someone you know is struggling to decide on the best mortgage type during these volatile times, contact us at Lotus Loans & Mortgages Corp or stop into our Mississauga office so we may offer an unbiased opinion based on one’s unique situation.