Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. *O.A.C. E.& O.E.
Best Mortgage Rates in Canada
Did you know that exit-penalties, prepayment options, and mortgage freedom are as important as the best mortgage rate? I have relentlessly studied every mortgage company in Canada to be able to offer you a suite of the best mortgage products available, at massive volume discounts.
A fixed rate mortgage allows you to “lock in” a predetermined rate for a specified term. The most popular term is 5 years, though you can get one that can last anywhere from 6 months to 10+ years.
The Pros of a Fixed Mortgage Rate:
Security of knowing what your exact principal and interest expenses are and will be
Hassle free. No need to monitor the market or mortgage industry until your term is nearly complete
Low risk, stable mortgage
The Cons of a Fixed Mortgage Rate:
Pay more interest over time historically than a variable rate mortgage
The mortgage penalty for breaking the contract before the term is complete is higher with a fixed rate mortgage. TIP: Fixed Rate Mortgages from the big banks include a mortgage penalty that is often 6-8x larger than all other mortgage companies.
Less freedom depending on your penalty type, it's important to understand the exit-penalties of your mortgage
A variable rate mortgage is based on the mortgage lender’s prime rate, with either a discount, or a premium applied. Prime is determined by current economic conditions, and is the benchmark interest rate used by major banks when pricing for short term loans. Since prime can increase or decrease on a monthly basis, a variable mortgage rate would increase or decrease with it as well.
The Pros of a Variable Mortgage Rate:
Historically lower rates than it's fixed counterpart
Ability to lock into a fixed rate during the term. Ask Ottawa Mortgage Broker - Chase Belair how this works
Pay a maximum of three months’ interest for breaking a contract
The Cons of a Variable Mortgage Rate:
Less financial security as prime can increase, increasing your monthly payment.
Financial planning and budgeting is somewhat less reliable by a small factor
If prime increases, so does the overall interest expense
Which mortgage type is right for you?
Within about 5 minutes of calling, you will have the advice and confidence that you need to make and educated and sound financial decision.
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