Its finally spring and the market is starting to pick back up. You keep hearing that its a good time to buy, and keep hearing all these different rates and terms; fixed, flexible, 2.79, 3.84, 2.29, 1yr, 3yr, 5yr, 10yr, ...but what does it all mean?
A mortgage rate is the rate of interest charged by the lender. So when it comes to dealing with your mortgage, obviously a lower rate is more favorable, as it means you will pay less interest on your mortgage. But mortgage rates go deeper than just the interest charged, and can be either a fixed amount that will not change for the duration of the mortgage, or they can be variable, and fluctuate.
Both Bank Of Montreal and TD Canada Trust are currently offering 2.79% on a 5 year fixed rate, which is the lowest two major banks have ever posted as a rate for that term.
Buying a home is a serious matter, and when it comes to mortgages, its vital that you find the rate and term that will work best for you. If you have any questions, feel free to give me a call. We have the knowledge and experience to help you find your dream home and fantastic resources, such as Mobile Mortgage Specialists who can work with you to help you achieve that dream.