Fixed-Rate Mortgage in Mississauga
eMortgage Solutions is the first-choice mortgage broker in the Mississauga area thanks to our extensive network of reputable lenders, our diverse team of seasoned brokers, and our individualized approach to customer service.
Mortgage shopping doesn’t have to be complicated. Book an appointment with one of our professionals for a stress-free, no-obligation consultation. Call us at (416) 258-0156 today.
What Are Fixed-Rate Mortgages?
Fixed-rate mortgages are exactly what they sound like: they are loans with interest rates that are fixed in place from start to finish. Regardless of the market, borrowers will always pay the same amount each month until the end of the term.
Fixed-rate mortgages are by and large the most popular choice among first-time homebuyers, probably because of the stability they offer. Applicants with set incomes appreciate the constant, regular payments and can budget accordingly, risk-free.
Even though the rates in fixed mortgages stay the same throughout the mortgage lifespan, it doesn’t mean all products are the same. Generally, the shortest term lengths boast the lowest interest rates. Conversely, the longer you take to pay off the loan, the more you can expect to pay in interest.
In the interest of customer satisfaction, we strive to source the largest selection of fixed mortgages on the market. With a range of term lengths from 5 to 25 years, we’re confident we can help you choose the best-value product for your unique needs.
What Drives Change in 5-Year Fixed Mortgage Rates?
With their low-interest rates, it’s no surprise that 5-year fixed mortgages are continually in high demand. But how come lending rates change year after year? The reason is that 5-year lending rates are linked to the Government of Canada’s bond yields.
Put simply, lenders use bond yields as a benchmark to calculate mortgage rates. When bond yields go up, you can expect interest rates to increase as well, and vice versa.
What’s the Difference Between Fixed-Rate Mortgages and Variable Mortgages?
The main and most obvious difference between the two is that fixed rates are set in stone throughout the loan’s lifespan, and variable rates fluctuate based on the market.
Another notable difference is that fixed mortgages are fully amortizing. This means that when the term finishes, the loan will be paid off in full. This is not necessarily the case with a variable mortgage, however. If your rates consistently increase in a variable mortgage, more of your money each month will go towards interest than equity, resulting in a remaining balance at the end of the term.
What Are the Pros and Cons of a Fixed-Rate Mortgage?
Generally speaking, homebuyers prefer the predictability of fixed mortgages. There’s no risk involved—the figures you agree to pay on the contract are locked in place. A variable mortgage is riskier but offers an opportunity to save money if interest rates decrease.
eMortgage Solutions Will Match You with the Best Mortgage Rate
In summary, every prospective homebuyer is different, and the right mortgage for you is not the same for your neighbour.
At eMortgage Solutions, we take the time to get to know our clients so that we can match them with the most economical mortgage plan for their needs.
Get started today! Give us a call to book an appointment with a mortgage broker.