Many people are avoiding longer-term fixed mortgages, expecting rates to go down. Here’s why you should consider a 5 Year fixed rate for your mortgage in this market.
- The Bank of Canada raised overnight rates by 25 basis points last week. This means variable rates are high and may increase even more in 2023.
- You can break a fixed-term mortgage when rates come down. Be sure to get a fixed rate that has a low penalty. Typically, banks will charge a higher fee than monoline lenders for breaking fixed terms.
- Right now, 5 year fixed rates are approximately 2% lower than variable rates. This means that you’re more likely to qualify for a fixed rate and maintain a stable payment structure.
Contact Vinil at (250) 309 5482 to schedule a no-obligation appointment regarding your next mortgage term.