RMG’s Valko: refinancing a trend to watch in 2022
Mortgage professionals across the country are also keeping tabs on the prime rate, with Valko stressing the importance of examining the likely consequences of rate increases on the real estate and mortgage markets as a whole.
“Rising interest rates are something that I believe we’re all keeping a very close eye on, and to what extent rates will rise to counter inflationary pressures,” he said.
“Prior to the pandemic we had a prime rate of 3.95% as compared to the current prime rate of 2.45%. It’s important for us to monitor our volumes and purchase transactions, as rates begin to rise, to weigh the impact that rising rates have on the real estate market.”
The fixed-vs-variable debate is another discussion point he’s expecting to continue in 2022, particularly if the variance between best fixed and variable rates narrows if fixed rates do not increase at the same price as others.
Valko, a seasoned entrepreneur who’s staked out a reputation for innovation and inventiveness, gained entry to the CMP Hall of Fame in recognition of the influence he’s had in shaping Canada’s mortgage industry.