On average, Canadians save thousands of dollars per year by comparing rates with us.
Our goal at Ratestead.ca is to make your shopping for the best mortgage rates in Ontario quick and pain-free. We are always working to bring you the lowest mortgage rates in Ontario free-of-charge. We do this by shopping for the most competitive brokers, banks, and lenders in Ontario. You can be sure you are getting the most up-to-date information, as we update the comparisons daily.
The variable mortgage rates expose the borrower to the interest rate changes and thus their mortgage payments. If the rates in the market fluctuate, the borrower will incur the difference in the interest that’s applied to their mortgage principal. Additionally, if the borrower’s mortgage payments have been structured so they can pay a fixed charge per month – with the changes in the rate affecting the principal portion and the interest – then the schedule of the mortgage payment may also undergo changes.
The 3-year variable mortgage rate is very sensible if the borrower foresees their mortgage breaking within a few year time. For instance, if you are looking forward to upgrading your home, opting for the 3-year variable mortgage rate over the 5-year rate will save you some good amount of money.
About 20% of the Canadian population have a mortgage term between 2 and 4 years, with the younger population having a figure slightly higher. The younger population have reduced the urgency to lock into the rates for a longer period of time.
The 3-year variable mortgage rates have a penetration of about 29% out of all the mortgages, meaning that it’s not as popular as the fixed mortgage rate. This is as a result of uncertainty related to the interest rate fluctuations.
The 3-year variable mortgage rate is chosen by people due to the following reasons:
This mortgage term has a number of disadvantages as well:
3-year fixed-rate mortgages have constant interest rates for a period of 3 years. This is your mortgage term, the locked-in rate for three years. It is different to the amortization period, which is the amount of time you can take to repay your mortgage. Your mortgage term is the point at which you can renew your mortgage rate.
Perhaps the biggest advantage of 3-year fixed-rate mortgages is that you know how much your mortgage payments will be. Also, you don’t have to worry about changes in interest rates. You can plan your budget, set mortgage payments aside, and forget about it.
These mortgages are the lowest cost option if you want to lock in their interest rates for the long term. Buyers should also have no intention of refinancing the mortgage or increasing the payment before three years.
In addition, longer-term fixed-rate mortgages cost borrowers more interest than short-term and variable-rate mortgages.
Also, when buyers switch to 3-year fixed-rate mortgages, most lenders are willing to pay the appraisal and legal fee.
Perhaps the biggest disadvantage is that fixed-rate mortgages have much higher penalties for early termination. Major banks calculate penalties using the bank’s current rate, which can be quite harsh.
5-Year Variable Mortgage Rate is increasingly gaining popularity in Ontario. We shop around for the best and lowest mortgage rates currently offered in Ontario. Our Rates are updated daily and rest assured you will find the best mortgage rates below.
The 5-year variable mortgage rate exposes the borrower to the changes in the interest rates and hence in the mortgage payments. If there are fluctuations in the market, you’ll incur the difference in the interest applied to the mortgage principal. Variable mortgage rates are also less expensive compared to the fixed mortgage rates when subjected to historic examination.
The 5-year variable mortgage rate fluctuates according to the prime lending rate movements, which is simply the rate at which banks lend their creditworthy clients. The variable mortgage rate is basically expressed as a prime plus or minus percentage discount or premium.
Although the fixed mortgage rate is the most popular at 66%, the significant minority consists of the variable and adjustable mortgage rates. This, therefore, means that the 5-year variable mortgage rates are not as popular as the 5 year fixed mortgage rates, which also are slightly popular in the younger age groups than in the old ones. The 5-year variable mortgage rate is, however, popular for most borrowers.
However, the 5-year term is the most popular duration for mortgage rates. This is very logical given that 5 years is also the midpoint between 1 and 10-year term lengths available.
5-Year Fixed Mortgages are the most popular mortgages in Ontario. Consumers have many options available when choosing 5-year fixed mortgages, so we at Ratestead.ca, shop for the lowest rates available in Ontario.
Choosing a 5-year mortgage rate in Ontario lets you know exactly how much your mortgage payments will be, regardless of interest rate fluctuations. This makes budgeting easier, with no unpleasant surprises for the length of your mortgage.
We recommend choosing a 5-year fixed mortgage when interest rates are low since the chance that rates will reduce further is slim. Your mortgage payments will be stable.
The penalties can be much higher for early terminations. Cancel
5-year fixed-rate mortgages have cost borrowers more interest historically as compared to a variable and short-term fixed rates.
The 5-year mortgage has a popularity of 60% out of all mortgages and is Ontario’s most common mortgage duration. This term sits in the middle of the available mortgage term lengths, that is, between 1 and 10 years, thus has risk-neutral average popularity. The majority of younger borrowers prefer the 5-year fixed mortgage rate in Ontario, while older age groups prefer variable rate mortgages.
Finding a mortgage that is right for you is not just about finding the cheapest interest rates anymore. Use our comparison tools to not only find the best rates on Mortgages in Ontario but also to compare the various terms and conditions each mortgage has. Find the latest information on open or closed mortgages, prepayment options, or fixed and variable-rate mortgages.
When comparing mortgage rates, it is important to consider the recent history of the rates to get a full picture of where they are going. When you look at the last several years and the thousands of people who have used Ratestead.ca, you will see that most people who are given the option between a 5-year variable or 5-year fixed-rate mortgage will choose a 5-year variable-rate mortgage because of the savings on interest.
This is a trend we will probably see continue due to how much variable rates have come down in the last several years.
With the lowest mortgage rates Ontario has, you can afford your dream home with a lot more comfortable. However, your broker or service may not be able to find you these rates as easily, but Ratestead.ca can. With a database of all the latest mortgage interest rates Ontario has, you will be able to find one that suits your financial plan in the best way.
Comparing rates among various brokers will let you know if yours is getting you the best deal- and where you can actually go to save even more money. Just enter your mortgage amount and let Ratestead.ca do the rest.
We never buy anything without comparing- be it mobile phones, internet providers, clothes or even automobiles. However, when we do the same with mortgages, the benefits are even bigger. Ratestead.ca gives you an easy and highly efficient way to compare mortgage rates in Ontario. This helps you save a lot of time and money with the best mortgage brokers Ontario has, along with the deals that they offer.
Owning your dream house can be a lot more affordable when you get the right mortgage deal- and that is what Ratestead.ca will help you find. Just enter your mortgage amount and terms to find and compare the best deals in Ontario.