Fixed-Rate Mortgages in Toronto
At eMortgage Solutions, our singular mission is to help our clients find the best-value mortgage for their budget and needs.
We source our products from numerous lenders and hand-pick only the lowest rates on the Canadian market. Speak to one of our specialists to find out more about fixed-rates—drop us a line at (416) 258-0156.
What Are Fixed-Rate Mortgages?
Fixed-rate mortgages are consistently the number one choice among borrowers in Canada. Homebuyers tend to prefer fixed-rates because of the stability they offer. When an interest rate is locked in, you don’t have to worry about a changing real estate market or having to adjust your monthly budget yearly.
Even though fixed-rate mortgages are consistent, there are still many options to choose from. Selecting a mortgage term and conditions can be an overwhelming task. Should you sign a 5-year contract or a 30-year contract?
When you book an appointment with us, we’ll walk you through all your options one by one. We’ll work tirelessly with you to narrow down your choices based on your preferences, concerns, budget, and needs. Plus, thanks to our many lender relationships, there’s no shortage of options available. We’re confident we can find the ideal loan for you.
How Do Fixed-Rate Mortgages Work?
A fixed-rate mortgage works differently depending on your term length and the prime rate. In general, in a longer-term mortgage, you can expect your monthly payments to be lower, but your interest rates to be higher. In a shorter-term mortgage, your monthly payments will be higher, but you’ll pay a smaller sum of interest overall.
There is no right or wrong choice when it comes to term lengths. The right one for you will depend on your financial situation and life goals. Our agents would be happy to run through all your potential payment situations with you, so you can get a concrete idea of what works best.
What Drives Change in Fixed Mortgage Rates?
The main factor that drives change in Canadian fixed mortgage rates is the Canadian bond yield. Lenders determine lending rates based on the current bond yields. So, if bond yields skyrocket, you can expect lending rates to skyrocket with them. The same follows if bond yields freefall—they’ll take fixed-rates with them.
What’s the Difference Between Fixed-Rate Mortgages and Variable Mortgages?
When you sign a fixed-rate mortgage, you’re effectively locking in your prime rate until the end of the contract. A variable mortgage is very different—when you sign a variable contract, you agree to pay a rate that will change with the market.
What Are the Pros and Cons of a Fixed-Rate Mortgage?
The most significant advantage of fixed-rate mortgages is that they don’t change. Homebuyers can budget in full confidence, knowing if they follow a set plan, they will pay off their property in full by the end of the term.
There is more inherent risk in variable mortgages—monthly payments can go up or down each year. If they go down, homeowners will save money, which isn’t possible to do with a fixed-rate mortgage.
eMortgage Solutions Helps You Find the Lowest Mortgage Rates
It’s crucial to find the lowest mortgage rates you can if you opt for a fixed-rate mortgage. Why not browse the wide selection of competitive mortgage plans at eMortgage Solutions? We consistently offer the most available interest rates in Toronto.
Give us a call to discover the great deals we have on offer.