Prospective homebuyers who are looking for a no-risk, set-budget mortgage payment plan will love an extensive fixed-rate mortgage options.
We work tirelessly with an extensive network of reputable lenders to put together the most attractive mortgage interest rates and term lengths available in Canada.
Find out more about fixed-rate mortgages below. If you have any questions, don’t hesitate to drop us a line at (416) 258-0156 to speak with a specialist.
What Are Fixed Rate Mortgages?
A fixed-rate mortgage is essentially a payment plan that is not subject to change. You will sign a contract on the set rate paid through regular payments, and this payment will stay the same throughout the entirety of your mortgage term.
What Is the Difference Between Fixed-Rate Mortgage and Variable-Rate Mortgage?
Since fixed-rate mortgages cannot fluctuate, you must lock-in at the lowest rate you can find. Payments on a variable mortgage, on the other hand, fluctuate based on the changing prime rate. This means that your mortgage rate may rise some years and fall other years, depending on the economic climate.
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What Are the Pros and Cons of a Fixed-Rate Mortgage?
Most Canadians opt for fixed-rate mortgages because fixed rates are risk-free. When you know precisely what you have to pay each month, you can budget accordingly in confidence. Not everyone has the financial security to make varied payments, so the stability of a fixed-rate mortgage is certainly a significant advantage.
The disadvantage of fixed-rate mortgages is that, though they are risk-free, they usually cost more in the end. With a variable rate, homeowners sometimes benefit from the market change, whereas those with fixed mortgages continue to pay whatever the prime rate was at the time they signed their contract. To find out if a fixed-rate mortgage is the right mortgage for you, schedule an appointment with one of our brokers today.
What Drives Change in 5-Year Fixed Mortgage Rates?
Our clients often come to us when they know they want a fixed-rate mortgage, but aren’t sure when it is the best time to sign to get the lowest mortgage rates.
It’s important to know that the 5-year fixed mortgage rate is closely related to Canadian bond yield. Put simply, the general trend is that when bond yields go up, fixed rates go up, and when bond yields go down, fixed rates go down.
This means that the banks determine their rates according to the market. If you’re a prospective homeowner looking to sign a mortgage, keep in mind that a low bond yield can work in your favor to lock in the lowest rate possible.
At our agency, we maintain a wide range of lender partnerships that include banks, private lenders, and trust and insurance companies, meaning no matter the market, our fixed mortgage rates are always the lowest available.
Find the Best Mortgage Rate Today
Are you ready to discover the best current mortgage rates available? Contact us today to get started.