How Interest Rate Cut Affects Your Mortgage Investment?

Want to know if the latest rate cut will affect your mortgage investment ? Do MICs consider rate cuts when allowing investors to invest in the mortgage pool? If yes, the answer is that rising or falling interest rates can affect both your mortgage portfolio and investment. Rising interest rates indicate that you will earn more money in your savings account or on the GIC you recently acquired. However, it is possible that your mortgage rate may rise, your auto loan will become more expensive, and your stock portfolio will decline. How do interest rates work? The interest rate is the amount a borrower pays a lender to borrow money. In terms of mortgage investment, it refers to the amount a mortgage borrower pays to a mortgage investor for money borrowed. It operates similarly with an interest-bearing investment. When you purchase a guaranteed investment certificate (GIC), you are giving the financial institution your investment capital at an annual interest rate. A mortgage borrow...