Choosing the right mortgage is more than just finding the best rate, you’ll also need to consider the type of mortgage that works best for your budget. The following information provides a brief overview for understanding the different types of Calgary mortgage rates.
Two Main Types of Calgary Mortgage Rates
There are two main types of mortgages: fixed rate and variable rate. They both have advantages and disadvantages for homeowners and the one that’s right for you depends on your situation and needs.
Fixed Mortgage Rate
With a fixed mortgage rate, the interest rate you pay stays the same regardless of what interest rates do during that period. Mortgages are for a specific length of time, such as a 3 years fixed or 5 years fixed. If you want to leave early, you are likely to have to pay a fee.
Advantages – Your monthly payments stay the same even if the interest rate rises, making it easier to budget.
Disadvantages – Fixed rate deals are often slightly higher and you won’t benefit if the interest rate falls.
When looking for a new mortgage, consider whether a fixed or variable mortgage rate works better for your budget. Do you need the security of knowing what your payments will be? Or do you have enough money set aside to take advantage of a lower variable rate while being prepared for a possible increase? When comparing mortgage rates, keep fees and exit penalties in mind too.
MortgageLine wants to help our customers find tailored mortgage solutions to fit their personal needs.With access to more than 230 lending institutions, our professional team knows how to find the perfect mortgage for any lifestyle.
MortgageLine is a Calgary based mortgage company committed to helping families succeed. We are here to help you find the best mortgage for your situation and lifestyle. Ready to get started? Apply online today, or contact our team!