The advantage of fixed rate mortgages is that you know exactly how much your mortgage payments will be regardless of whether rates rise or fall. You can, essentially, set it and forget it. This eases the budgeting anxiety that may follow a variable rate mortgage. When interest rates are low, and the spread between shorter-term rates and the 5-year fixed mortgage rates is less significant, it is typically recommended that you lock in the 5-year rate.
Here's why you might want to rethink getting an adjustable rate mortgage
The longer term offers stability and, because rates are historically low, the chances of rates decreasing further with a variable rate are greatly reduced. On the other hand, as is the case with all fixed mortgage rates, there is the potential to pay higher interest when variable rates are low, and, examined historically, variable rates have proven to be less expensive over time. By and large, the 5-year fixed mortgage rate follows the pattern of 5-year Canada Bond Yields, plus a spread.
Bond yields are driven by economic factors such as unemployment, export and inflation. When Canada Bond Yields rise, sourcing capital to fund mortgages becomes more costly for mortgage lenders and their profit is reduced unless they raise mortgage rates. The reverse is true when market conditions are good. In terms of the spread between the mortgage rates and the bond yields, mortgage lenders set this based on their desired market share, competition, marketing strategy and general credit market conditions. Home Price:. Hit enter or click outside the box to refresh your results Dismiss.
Rate Type: Type Please tell us which type of mortgage rate you want. A fixed mortgage rate is one that stays the same throughout the duration of your mortgage term. A variable mortgage rate is attached to Prime, which means it will fluctuate if Prime goes up or down. An open mortgage is one that can be prepaid anytime without penalty, but comes with higher rates. And a cash back mortgage gives you the option to borrow some extra cash when you buy your home.
Fixed Variable Fixed - Open Variable - Open Cash Back Term: Term The mortgage term is the amount of time a home buyer commits to the rules, conditions and interest rate agreed upon with the lender. The term can be anywhere from six months to 10 years, with a 5-year mortgage term being the most common duration. More options.
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Did you purchase CMHC or equivalent insurance on this mortgage? Repayment period years.
Rate type Any Fixed Discounted Tracker. Payment type Repayment Interest only. How would you like to repay?
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Repayment Interest only. Update results. Edit mortgage details. We found mortgages for you. Initial rate 1. APRC 4. Must already have a mortgage with Platform. At end of initial period mortgage reverts to Standard Variable Rate currently 4. APRC 3. Must already have a mortgage with Barclays Bank. Must be an existing customer of Lloyds Bank.
30 Year Mortgage Rate:
Must already have a mortgage with Skipton BS. Show 10 more mortgages. What is remortgaging? Why do people remortgage? The two most popular reasons why people choose to remortgage are: To save money - in order to lower monthly repayments or benefit from lower interest rates. More than half of all borrowers in the UK are currently paying more than they need to on their mortgage.
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To raise money - to release some of the equity in your home. This could be useful if you wanted to consolidate debts or release money for making home improvements and adding value to your property. However, there is also the possibility of doing this with your current mortgage lender, with the added benefit of avoiding any penalty fees that come with switching to a new lender.
Who can remortgage? When is a good time to remortgage? How long does remortgaging take? Will remortgaging cost me anything in fees? How do I find the best remortgage deals?