Fixed mortgages are an ideal option for prospective home buyers with a set income and budget. These stable mortgages allow you to lock in at a set rate for the duration of the term.
At The Mortgage Ability, thanks to our vast network of lenders and our in-depth industry expertise, we consistently offer our clients some of the lowest fixed rates on the Canadian market.
Is a fixed-rate mortgage the right choice for you? Speak to our personable, expert specialists to learn more about our current mortgage rates. Reach us at (214) 293-9383 today.Call Now
What Are Fixed-Rate Mortgages?
Fixed mortgage rates offer loan applicants a stable, no-risk payment plan. That’s because, unlike variable mortgages, fixed mortgage rates are locked in for the entire term. When you sign the contract, your payment amount will be calculated based on a prime rate.
Your prime rate will not fluctuate as the economy changes over the length of your term. So, the amount you sign on to pay each month for the onset will always be the same.
At our brokerage, we negotiate with many reputable lenders to drive down prime rates and offer our clients the best deals that they can’t find anywhere else. The result is, with us, you can save thousands of dollars over the life of your mortgage.
Pros and Cons of a Fixed-Rate Mortgage
It’s no wonder why fixed-rate mortgages are one of the most popular choices among prospective homeowners. Fixed-rate mortgages offer the advantage of predictability, which allows applicants to budget easily. Those who choose variable mortgages, on the other hand, must accept the risk that their payments can go up or down—it often requires a certain amount of financial security to accommodate these changes.
While fixed-rate mortgages involve no risk, the disadvantage of these contracts is that they usually end up being more costly. Applicants should consider whether they can accept the risk of a variable mortgage or if the premium is worth the security of a fixed rate.
What Drives Change in a 5-Year Fixed Mortgage Rate?
Fixed-rate mortgages have a positive relationship with the Government of Canada’s bond yields. In other words, when bond yields increase, so do fixed rates. Conversely, when yields decrease, fixed rates follow suit. This is not the case 100% of the time, but it is the general pattern.
What does this mean for prospective homeowners? It means that your lender will determine your prime rate based on the current bond yield. Ultimately, you should be aware that the economic climate will affect how low or high your fixed rate will be.
Thanks to our far-reaching network of lender connections, we’re uniquely positioned to offer our clients the lowest mortgage rates in every kind of market.
Discover the Best Mortgages Rates in Canada
To discover our current fixed-rate mortgage plans, give us a call. We are happy to assist you in choosing the perfect mortgage for you and your budget.