The volatility of interest rates has fuelled rumours that Real Estate sales will die this summer. The international market place has labelled Canada as a potential fragmented country, therefore higher interest rates are warranted to attract investment. This, coupled with signs of inflation in the United States, has placed us behind the proverbial "eight ball".

THE ONLY SURE WAY OF PROTECTING YOUR FUTURE IS BY BUYING THE ROOF OVER YOUR HEAD!

Think about it, the largest monthly draw against income, for most of us, is housing. As we grow older, if we continue to rent, that trend won't change. Twenty-five years from now we could still be renting.

If we buy now, twenty-five years could spell relief from debt. At that point, property taxes and up-keep are a far cry from rental payments. You will then be able to afford to think about retirement through RRSP contribution and/or other interest bearing investments.

Let's face it, all this doom & gloom about spiralling interest rates has a negative impact on our way of thinking. But should we be scared? The long term mortgage rates today are equivalent or lower than the average rate over the last 25 years. We can still find a 5 year term mortgage rate at 11% or less. That means your mortgage payment will cost you $9.63 a month for every $1000 borrowed ($963 on $100,000 mortgage). For most of us, that isn't much more than our rent payment. The rent seems to go up each year, but we can lock in mortgage rates for five years (or longer).

Use the negative press to your advantage when negotiating to buy a home. Vendors all over town are losing hope in their quest to rid themselves of existing property. If you are willing to buy their home, they should be willing to thank you for alleviating their worries. That relates to dollars. Refer to last week's Sunday Home Section to see how to negotiate on benefits rather than on price.

So you see, rising rates can be a blessing in disguise. Purchasers are in a buyers market (good deals), and our elderly can now enjoy better lifestyles due to higher interest on their investments.

Phone that Real Estate Agent now & start shopping for your new home, your retirement planning demands it.