Fixed Rate Mortgage — A Closed Rate Means Peace-of-Mind
“Lock-In” Your Rate With This Mortgage
A fixed rate mortgage is a traditional mortgage, in which the interest rate is fixed over the term of the loan. Compared to a variable rate mortgage whose interest rate may fluctuate, a fixed, or closed, mortgage rate is “locked in”.
A fixed mortgage rate can provide you with peace-of-mind knowing your payments will remain the same during the loan period. This type of mortgage is ideal if you are a bit risk-averse when it comes to investments, or if you believe that mortgage rates will be increasing in the future.
Brokers For Life is highly experienced with brokering fixed rate mortgages across Canada — including in Alberta, BC, Manitoba, Saskatchewan and Ontario.
Open Vs Closed Mortgage — Which is Best for You?
When trying to decide on a mortgage strategy, you have many options to consider. Closed versus Variable rate.
A fixed rate mortgage is often chosen by a first time buyers, or risk adverse individuals. While a variable rate mortgage is chosen by more established buyers, who are more willing to take a chance on a variable interest rate.
What to expect with a fixed rate mortgage:
- Your payments will be the same, every month
- You might pay a slightly higher interest rate, compared to a variable rate mortgage
- If the Prime Rate goes up then you save, if it drops you “lose” those savings
What to expect with a variable rate mortgage:
- Your payments will be dependent on the Prime Rate
- You can expect a slightly lower interest rate, compared to a fixed rate mortgage
- If the Prime Rate goes up you pay more, if it drops you save!
The good news is that Brokers For Life offers a variety of customized loans and traditional mortgages. We have experience with Canadian mortgages and can find the right solution for you.
Apply online to get the process started, or contact a local Canadian mortgage associate. No matter your goals, we’re here to help.
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