Fixed-Rate Mortgage in Oakville
eMortgage Solutions offers the most extensive selection of home financing solutions in Oakville. We work with many reputable lenders to hand-select only the best-value fixed-rate mortgages available.
Discover the lowest mortgages rates in Canada. Contact us to set up a no-obligation consultation with one of our seasoned brokers today.
What Are Fixed-Rate Mortgages?
A fixed mortgage is one of the most widespread loans available, and also one of the most straightforward. The reason it’s straightforward is that the interest rate in this type of mortgage is locked in. When homebuyers sign the contract, they know precisely how much they must contribute, and for how long, to pay back their loan in full.
Despite their simplicity, choosing the fixed-rate mortgage that is right for your financial situation is not always easy. Due to its popularity, there are virtually endless varieties of fixed-rate mortgages out there, with differing term lengths, conditions, and interest rates.
At eMortgage Solutions, we approach mortgage hunting with an individualized approach. We seek to understand your needs and goals first before we match you with our products. With us, you can rest assured knowing you’ll find the most economical loan for your unique situation.
What Drives Change in 5-Year Fixed Mortgage Rates?
5-year term mortgages are an appealing option for prospective homebuyers thanks to their low-interest rates. Typically, you can expect shorter terms to boast lower rates and longer terms (20-30 years) to have higher rates.
How do lenders decide what interest rate to offer for each loan? Ultimately, fixed-rate mortgages fluctuate in response to the Government of Canada’s bond yields. Your bank or lender will take the current bond yield as a benchmark to calculate what lending rates should be. When yields go up, so do mortgage rates and vice versa.
What’s the Difference Between Fixed-Rate Mortgages and Variable Mortgages?
In a fixed-rate mortgage, the interest rate is fixed in place for the entire term. A variable mortgage, on the other hand, is more like a series of short, fixed-term mortgages. In a variable mortgage, interest rates fluctuate periodically, going either up or down with the market.
Another key characteristic that differentiates these two mortgages is their amortization periods. A fixed-rate mortgage is fully amortizing, which simply means at the end of the term you are guaranteed there will be no remaining balance on your loan. A variable mortgage doesn’t come with this guarantee. If your interest rate increases and your monthly payment stays the same, it means you’re contributing less towards equity each month. The result is that your term length may be extended in a variable mortgage to pay off remaining equity.
What Are the Pros and Cons of a Fixed-Rate Mortgage?
The major benefit of a fixed-rate mortgage is its predictability. Homebuyers can make a precise budget in full confidence. Variable mortgages carry more risk since the interest rate may increase. However, with risk may come reward—the interest rate may fall and offer a cost-saving opportunity.
Find Out if a Fixed-Rate Mortgage Is an Option for You
When it comes to mortgages, there is no right or wrong answer. The right product for you depends on your financial situation, your goals, and your risk tolerance. At eMortgage Solutions, we spare no effort to take our clients through their options one by one. We won’t stop until we find the perfect match!
Contact our Oakville office today to speak with a professional.