Major banks in Canada recently announced a reduction to their fixed rate mortgages. It seems bank executives are more confident about the housing market and the likelihood of a major correction in housing prices.
This should provide good news for people who are separating and making decisions of how they split their assets, in particular, the matrimonial home. For many, keeping the house is important for couples with children and keeping a stable environment for them. For older couples, whether they choose to buy a partner out and remain in the matrimonial home or sell and each purchase a new home, lower interest rates allow for more flexibility when it comes to possible settlement options.
Managing two households costs more than maintaining one household. With late in life divorce, retirement plans are greatly affected by housing costs.
Many people finance equalization payments owing to spouses through refinancing existing mortgages, so lower mortgage rates in those situation helps.
If selling the matrimonial home is part of a settlement plan, lower mortgage rates make home buying more attractive. If keeping the matrimonial home is an option, managing cash flow is easier with lower monthly mortgage payments.
The home you want to keep or the home you want to buy after divorce may
now be a real possibility.