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Fixed Rate Mortgages

Why You Should be Shopping for a Fixed Rate Mortgage with a Broker

Fixed rate mortgages are Canada’s most popular mortgage choice.  But, do you know that a trusted mortgage broker can help you shop for a better fixed rate mortgage? When it comes to mortgage options there are many.  Based on your needs, you can choose to go with a variable or a fixed interest rate. Either type of loan can work. But a borrower should always consider both long- and short-term goals before choosing which way to go. An experienced mortgage broker can help make the decision easier.

Moreover, they can also help you avoid the rate trap.  Many lenders and brokers post their lowest rates.  Unfortunately the lowest rate isn’t always the best rate when considering the terms.  Many of these rates come with little to no flexibility.  The lowest rate usually doesn’t permit extra prepayments.  They can also have massive penalties if you sell or need to refinance.  The mortgage brokers network can help you explore your options.

Fixed rate mortgages can be advantageous for many borrowers. You can trust the experts at Mortgage Brokers Network to help you determine the best solution for you. We have more than 30 years of experience helping home owners. Additionally, we have cultivated a network of trusted lenders. Our lenders   will work with even the most difficult circumstances to provide the best interest rates.

Comparing Fixed and Variable Rate Mortgages

Over the last few decades, variable rate mortgages have out performed fixed mortgages.  That being said, there is always more to consider than just the rate or savings.  For instance, can you afford fluctuating rates? How long do you plan on staying in your home? What kind of penalty could you face if you decide to sell or refinance? Before choosing a product there are many questions that need to be answered.  The team at Mortgage Brokers Network can walk you through them to help you choose the best product for you.

Since variable rates are built on a prime rate driven by whatever the current Bank of Canada prime rate happens to be, the interest paid on this type of loan can go up or down. A fixed rate will remain static and you can be sure that it will never go up – but this also means it can’t go down.

Fixed Rates Can Be Paid Off at a Steady Pace

In either case, your monthly mortgage payment will remain consistent. Your variable rate mortgage payment and your fixed rate mortgage payment will not change. What will change, is how your payments will impact your principal balance.

The payment amount on a fixed mortgage will remain the same for the term of your mortgage.  Likewise, a variable rates payment will remain the same but the amount applied to principal may change.  The higher the variable rate, the less applied to principal. The lower the variable rate, the more that is applied to the principle.

Applying for a Fixed Rate is Easier

Qualifying for variable rates may be a little more challenging for some borrowers. Lenders use something called the “benchmark rate” (set by the Bank of Canada). The benchmark rate is used to ensure the payments are affordable.  So, if you’ve got any concerns about credit worthiness or income, a fixed rate application may be much easier.

Converting to a Fixed Rate is Always an Option

Even though a variable rate mortgage can be more difficult to qualify for, it is possible to switch to a fixed rate if you change your mind later. Fortunately, lenders rarely charge significant penalties for converting from a variable rate to a fixed rate.

The Mortgage Brokers Network Advantage

Working with a mortgage broker is always going to provide you with an advantage as a borrower. A mortgage broker with an extensive network of lenders is even better. Our brokers have decades of experience and a list of trusted contacts that you can rely on. We have spent years perfecting the art of knowing who to contact to get your mortgage application approved.

You can trust us to be your best ally when applying for a fixed rate mortgage or your next home loan. Whether it’s time to apply for a new mortgage or you’re looking to renegotiate and make a change, we’ve got you covered.

You Can Trust Mortgage Brokers Network to Find the Best Mortgage for You

You can count on us to shop for the best fixed rate mortgages available. Finding the right mortgage rates for Canadian homeowners is our forte. Book a consultation with our team to review our full range of mortgage services.

Apply for a fixed rate mortgage with us and we’ll complete a free, no-obligation review of your finances. We promise to offer reasonable solutions to get you what you need.

Discover what 30 years of experience can do for you, contact us today.

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Term Posted Rate Our Rate Claim This Rate
Home Equity Line of Credit Prime + .50% Prime +.50% Claim Rate
Fixed 1 Year 5.24% 4.74% Claim Rate
Fixed 2 Year 5.19% 4.89% Claim Rate
Fixed 3 Year 5.24% 4.94% Claim Rate
Fixed 4 Year 5.34% 4.99% Claim Rate
Fixed 5 Year 5.19% 4.59% Claim Rate
Variable 5 Year 4.70% 4.7% (prime -.90%) Net Rate 3.80% Claim Rate
Fixed 10 Year 5.99% 5.79% Claim Rate