Everybody seems to be talking about mortgages now in Toronto. They are asking about the different products and what each product means to them (benefits/risks/costs).
We often hear people ask the difference between a fixed rate or a variable rate mortgage which seems to be a difficult decision in and of itself.
Homeowners stress about whether they should lock into a rate that is predictable – and at a rate at which they are comfortable … or should they consider a lower rate mortgage that will fluctuate.
Many Canadians haven’t really considered hybrid mortgages. Generally speaking, a hybrid mortgage combines fixed and variable rate components, so for many, a hybrid mortgage is the way to go.
Some people predict that interest rates will rise; however, not all Canadians necessarily think the choice is obvious to automatically change their mortgage setup for a fixed rate with a longer term, states Marcia Moffat, head of home equity financing, RBC Royal Bank. “As consumers begin to learn about the benefits of mortgage diversification, we’re seeing more homebuyers gain a better comfort level with adding floating rate mortgage options.”
Various banks are now offering Hybrid Mortgage products; however, this would be a good time to remind you about the many benefits of using a recommended mortgage broker. Among the many benefits, the three most obvious benefits of using a mortgage broker are:
1) They are unbiased because they don’t sell their own proprietary product.
2) They are experts in knowing what is best for you,
3) Their services cost you NOTHING!
The beauty of the hybrid mortgage is that you can maximize low interest rates while retaining the security of a fixed mortgage. It reduces some of the risk exposure you take on with a floating rate, and also lessens the burden of trying to accurately time the interest rate environment.
While a Hybrid mortgage might not be the perfect choice for everyone, it is definitely worth investigating further.
And … if you want us to recommend a mortgage broker or two who are excellent at what they do, just give us a call or email and we’ll send you their contact info!
Michael: (416) 414-0554