When you buy a house, there are numerous thoughts hovering in the mind of the buyers. Some of the concerns buyers go through are- How much amount would be needed to pay upfront? What would be interest rates? Which location would be more convenient to buy a house?
In this blog, we are going to discuss interest rates. You would collect information after reading this blog thoroughly, and able to decide which option is better for you, fixed-rate mortgage, or variable rate mortgage.
To begin with, a fixed-rate mortgage provides relaxation with no future surprises as interest rates and mortgage payments remain constant all over the period – usually term 5 years. This might work for those buyers who will not get any increase in their income level over a period. Along with that, a fixed rate helps to follow the budget and provides an idea of the amount of monthly payments that are going to be deducted from the bank account every pay period.
However, a fixed rate comes with high-interest rates as compared to a variable rate. The key is that any fluctuation in the market cannot influence fixed rates. Let us say if your mortgage term is a 5-year mortgage fixed-rate and amortization is 25 years, then the interest rate will not go up or down, whereas variable rates go up and down if any change occurs. The variable interest rate comes with lower interest rates, but these rates might be a good fit who earns large chunks of income and who is more comfortable facing sudden changes in their budget. The variable rate is influenced by the prime rate.
What is a Prime Rate?
Variable rates are linked to Prime rates. Major banks and financial institutions in Canada use prime rate to set up interest rates for variable rate mortgage and line of credit as well. They set the interest rate to cover the cost, which they face to borrow money from the Bank of Canada. Currently, the Prime rate is 2.45%, which depends on the Bank of Canada’s overnight target rate. Call us today to get an idea of which mortgage interest rate would work for you.
Why choose us-
As a Mortgage Brokerage, we have strong relations with multiple banks and numerous lenders. We work with Canada’s leading lenders to provide you a mortgage solution that fits your budget. Our mortgage and financing process is amazingly simple, we represent you and match you with the best suited mortgage as per your needs. This way we can guide you through this complicated process with our years of mortgage financing experience.
• We are dedicated and professional Accredited Mortgage Brokers in GTA.
• We are well trained and have experience in the mortgage financing field more than 10 years.
• We can shop around with different lenders to get you the best possible mortgage rates and conditions as well.
• We have different options for different income and credit level with access to number of private lenders to suit borrower’s needs.
We are a professional mortgage broker in GTA. We can help you secure a mortgage with best mortgage interest rates. We are located at 2896 Slough Street, Unit # 6, and Mississauga, ON L4T 1G3. Call MB Mortgages Inc. today at 905-458-6929/416-939-7131 for your queries or you can email us at: firstname.lastname@example.org or you can visit our website at www.mbmortgages.ca
The information provided in this blog post is intended to provide general information. You should consult with a mortgage professional to fully determine the scope of your situation. MB Mortgages shall not be held liable from usage of the information provided on this page. Individual situation may vary.