With the once popular variable mortgage no longer offering significant discounts off the prime rate, we have seen a turn of the tide over the last several months as Canadians conclude that long-term fixed rate mortgages look very attractive again, and for some consumers, the longer the better.
Many homeowners are locking in to historic low mortgage rates. A longer term mortgage offers the security of knowing exactly what your mortgage rate will be for the term chosen, which means that whatever happens to the mortgage rate environment, you can plan your payments until the end of the term. Typically, the majority of those who lock in to a fixed-rate mortgage choose a five-year term, although some are now taking a look at the security of longer terms mortgage rates.
With today’s opportunity to lock in historic low mortgage rates that are among the lowest in history, some homeowners who locked into a very good mortgage rate a few years ago are even willing to pay an interest penalty to lock into a new mortgage at today’s rates. We can do a review of your situation to see if you can benefit. Other homeowners are putting this historic low mortgage rate opportunity to use for other money-saving reasons, which include:
- Consolidating more than $25,000 in high-interest loans or credit cards and rolling those bills into a lower-rate mortgage to boost monthly cash flow, have one monthly payment and save on interest costs
- Taking equity out for a renovation or home repair project, an investment opportunity, or a large looming expense – tuition, wedding, or dream vacation
If you are wondering whether it is time to lock in your variable rate mortgage, contact us for a review of your situation, especially if it has been over a year since your last mortgage review. We can help you make sure your mortgage continues to meet your needs.
The right mortgage, of course, depends on many factors: including your personal financial situation, goals and risk tolerance. That’s why it’s a great time to talk. We are always aware of the current environment and the resulting implications, so we can help you find a mortgage that gives you an edge and meets your current needs and future goals. In fact there are many reasons to contact us today: if you’re a first-time buyer or trading up, looking to manage your debt or manage a new business, whether you need a renewal, a refinance, or a renovation, and even in tough situations – divorce, job loss, or bad credit – we’ll help you use today’s great rates to get you where you’re going.