If you are shopping around for a lender, you may see different advertised interest rates. Don’t get caught up in all the smoke in mirrors. Having an in-depth knowledge about the rate AND product you chose is the only way to be educated. Before you start comparison shopping based on these advertised teaser rates, consider one of the following…
If you can pay your mortgage as quickly as possible, then consider an open mortgage. Open-term mortgages can be repaid partially or fully without any prepayment interest fees.
You can also covert this type of mortgage to another term without penalty.
It offers a great flexibility but may carry higher interest rates than other mortgage options.
Fixed Rate Mortgage
Typically the most common option, a Fixed Rate Mortgage rates imply fixed monthly payments that remain consistent over a period of time. Fluctuating interest rates will not impact you during your 1-5 year term.
If you are seeking stability, then this is the best option.
Variable Rate Mortgage
In a variable mortgage rate, payments are influenced by the Bank of Canada prime rate and implies how much your fluctuating payment will be throughout the term of your mortgage.
Variable Rates change alongside any changes to the Prime rate, as set by the Bank of Canada and in turn the reaction from each individual financial institution.
Exclusive Mortgage Rates in Canada
If you have bought a home or are planning to buy it in the near future, you may be concerned by talk of rising interest rates. A little tilt in mortgage rates can have a huge impact in monthly obligation or future home equity. As our economy changes, interest rates will continue to impact Canadian homeowners and investors.
The Lending Nest team provides complete support and help in finding the best rates to fit your needs. We look for the most complete solution and the most competitive, special offerings on mortgage rates and products to suit your individual needs.
Still not sure which option is best for you?
Call The Lending Nest and we will help you build your 5 year plan and help you decide which option is best for your and your family.