The Advantage of Fixed Rate Mortgage:
Why Choose a Fixed Rate Mortgage:
Without doubt, the west-island and Montreal is one of the loveliest places to live for anybody who cherishes style, beauty, and convenience. Those vast cities are renowned for there mesmerizing landmarks and vistas that include the architectural marvels of Old Montreal, the Notre-Dame Basilica, and the breathtaking Montreal Botanical Gardens. The various attractions have driven up Montreal’s popularity among many homeowners and property dealers. Montreal has marvelous housing units and condominiums that are styled to the tastes of the modern preferences. The process of buying a house in Montreal should begin with a review of the existing mortgage terms. Real estate analysts have revealed that 66% of Canadians prefer the fixed rate mortgages over the variable rates. The available rates range from a 1-year mortgage rate to mortgage rates that go beyond 10 years. However, the 5-year fixed mortgage rates are the most popular and the least complicated for a majority of Canadians.
Advantages of the 5-Year Fixed Mortgage Rates
* The 5-year fixed mortgage rates ease the anxiety of budgeting.
* They fall within the risk-neutral average when compared other options.
* These mortgage rates are popular and convenient across all the age groups.
* The borrower has enough time to plan finances and investments.
* They are manageable for average income earners.
Fixed Rate Mortgages – Clearing Misconceptions
Some aspiring home buyers often mix up facts regarding the 5-year fixed rate mortgages. The common challenge is usually the distinction between the term of the mortgage and the amortization period. In essence, the 5-year fixed rate refers to the duration within which the interest rate shall remain unchanged from the point of engagement. The lapse of 5 years would mean some changes on the interest rate. On the other hand, amortization period refers to the period in which the entire mortgage shall be cleared. Amortization period could be 25 years or any other alternative as agreed in the terms.