What You Need to Know About Fixed Mortgage Rates 🏡📈

​

Fixed mortgage rates are straightforward. They remain constant for the term you have selected, providing stability and predictability for your payments. You won't have to worry about fluctuations during the term.

​

Benefits of Fixed Mortgage Rates: ✅

• Stability: Your rate and payment remain the same throughout the term.

• Predictability: Easy to budget and plan your finances.

​

Term Options: 📅 Most lenders offer a range of fixed-rate term options, typically from 6 months to 10 years, with 5-year terms being the most common choice.

​

Impact of Lower Fixed Rate Terms: 📉 When paying out or breaking an existing mortgage, lower fixed rate terms come into play. For example, if you have a 5-year fixed mortgage and decide to pay it off after 2 years, your rate would be compared to the 3-year fixed rate to determine the payout penalty. If you had a current 5-year fixed rate of 2.99% with 3 years remaining, and the lender's 3-year fixed rate is 2.29%, the difference of 0.7% would be multiplied by the remaining term and balance to calculate the penalty.

​

Qualifying Criteria: 📋 Different qualifying criteria apply based on the rate chosen. For 5, 7, and 10-year terms, you can qualify using the selected rate plus 2% or the Bank of Canada Benchmark rate, whichever is higher. This makes it slightly tougher to qualify, likely due to the anticipation of higher future rates.  For renewals, there is a possibility that you can qualify using the selected rate.  

​

Need Help Deciding? 🤔

For assistance in choosing the best rate for your situation, please contact me. I'm here to help you navigate your mortgage options and find the best solution for your financial needs.