You can do many great things in five years. You can travel the world. You can get an advanced degree. You can start and grow a business. You can even write a best-selling novel. Five years is an ideal amount of time to accomplish anything you set your mind to, especially realizing your dream of home ownership.
A five-year fixed rate mortgage can prove to be an ideal option for many people looking to take out a loan for a home purchase.
This type of mortgage offers borrowers the same interest rate for five years. During this five-year period, your interest rate will remain constant no matter what the market dictates.
If rates should rise, your mortgage will not be affected. On the contrary, if rates should fall, you will not get the lower rate. However, many Canadians prefer the financial stability offered by a five-year fixed rate mortgage because the amount of their monthly mortgage payments will not fluctuate.
Financial stability isn’t the only reason people opt for a five-year fixed rate mortgage. Besides knowing that your interest rate will remain the same for the set period of five years, Canadians get this particular loan because they have no plans to refinance their mortgage before their five-year term is up.
Five years may seem like a long time for a mortgage term, but it is actually one of the most popular options in the industry. If you have no desire to break your mortgage before the end of your five-year term, you will not face any penalties. Many borrowers aren’t too keen on paying a penalty just to get a better interest rate.
Absolutely! The job of a mortgage broker is to get you a mortgage – any kind of mortgage. Brokers work for you and represent you to different lenders. Their goal is to get you the ideal mortgage package to fit your financial needs.
Furthermore, mortgage brokers will find the best interest rate to go along with your funds. While your broker shops around to get you the perfect five-year fixed rate mortgage you can sit back and relax. You don’t have to worry about approaching different lenders because your broker will take care of everything leaving you to reap the benefits of the perfect mortgage.Back
Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).
Everyone who is looking to purchase a home will need a mortgage. But, what is a mortgage exactly and why do you need it? Besides being the term to describe a loan secured by real estate, a mortgage allows you to access funding to procure your dream home.
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For new homeowners, or for those looking to renew a lease, rising interest rates will have an effect on your finances. Read More