There is no denying the fact that mortgage rates in Canada remain on average at a good low-point compared to their all-time highs. Although Canadian mortgage interest rates have seen some small jumps in the last couple of years, these jumps are small enough not to be felt by many, and they have still kept Canadian mortgage rates low. You might be wondering, why? It is due to the flexibility in the home loan structure with current mortgage rates.
Today, there is no denying the fact that these mortgage rates are in their lowest range in 10 years. While fixed-rate terms go for as short as 2.39 percent presently, it’s a rate that is still deemed higher than other popular nations.
Let’s find out some of the reasons why opting for Canadian mortgage interest rates are best.
Many banks and financial institutions in Canada offer a minimum of 4 varieties of home loans which can fit within the financial constraints and the payment preferences of anyone willing to take up a mortgage in Canada. These structures are developed by various banks and institutions believing that the need and motives for owning a house or a property are different for different types of people. And of course, each category of home loan offers different kinds of Canadian mortgage interest rates.
The home premier option typical offer in the majority of Canadian mortgage companies is Closed Variable Interest with a closed duration of 5-years. In this kind of Canadian mortgage rate, the rate of interest is reset every month. This resetting of interest rate after every fixed interval is useful if the interest rates are trending downwards; however, people should not go for this sort of loan if the interest rates in the market are going up. There are numerous payment alternatives that are available based on the financial conditions of the borrower — a person may pay weekly, alternate weeks, monthly or every other month. The availability of finance can either be conventional or high-ratio. The initial payment can be very low, equivalent to 5% of the loan amount. Canadian mortgage rates range from 5.50-5.75% for such types of loans.
Another type of five-year mortgage loan is a Fixed Mortgage Rate loan. But Canadian mortgage rates range from 6-6.38% for such loans. Opposite to loans where the interest rate is reset every month, this loan is not advisable if the interest rates are trending downwards; however, one can go for such a loan if the interest rates are moving upwards. A five-year mortgage loan, be it fixed or closed, applies only to properties classified as residential.
Wrapping Up
If you are looking to get precise and accurate information on Canadian mortgage interest rates, then look no further and visit the official website of RateShop.ca. We provide all the needful information on mortgage, loans, and insurance hassle-free.
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