Fixed Mortgage Rates

Turkin Mortgage provides you the best Fixed mortgage rates in Toronto.
Our mortgage brokers provide the best mortgage rate solutions in all of Toronto. When choosing the most appropriate mortgage rate for yourself, you typically have two options: a fixed or variable mortgage rate. Turkin Mortgage provides you the best Fixed mortgage rates in Toronto.

Fixed mortgage rates are more reliable than variable mortgage rates and depending on your financial situation may be the best option for you. With variable mortgage rates you will not have complete knowledge of the amount you will be paying for your mortgage term. If you don’t want to experience the effects of market fluctuations on your payments then a fixed mortgage rate will relieve you of that burden.

A fixed mortgage rate remains the same for a pre-determined period of time, unlike loans where the interest rate is subject to change. This period usually ranges anywhere from six months to 10 years, but in some cases can be much longer. By choosing a fixed mortgage rate you will be making consistent and stable payments for a fixed term. The benefit of that is that there will be no unpleasant surprises down the road and you can plan your budget and finances accordingly because you know from the very beginning your total cost.

In Canada, fixed-rate mortgages are a popular form of loan for home purchases, especially for a five-year term. However, fixed rate mortgages may sometimes end up being more expensive than an adjustable mortgage rate especially for much longer terms. Everything depends on the market. Although variable mortgage rates are lower, they are definitely more risky. Even if rates are remarkably low at the time that you commit to a variable mortgage rate, they may double in the following years.

Open term mortgages are more appealing to people that plan to pay off their mortgage in the nearby future, are considering to sell their home, want to make a significant pre-payment (at any time, without charge), or feel that rates will decline. Overall, open fixed rate mortgages offer the most flexibility but come at a higher interest rate. Also, you are able to switch to another term whenever you’d like, free of charge.

If you’re not planning to pay off your mortgage in a short term, a closed term mortgage is most likely the best option. Everything – your interest rate, payments and your term of choice, are completely fixed. This choice relieves you of having to worry about any changes, such as rates rising. With closed term fixed mortgages you will be able to save on interest costs and payoff your mortgage more efficiently through a consistent method. In comparison to an open fixed mortgage, a closed mortgage offers a lower rate for the same term.

Let’s you convert to a closed term of one year or longer at any time, without charge. This product may be for you if you want to keep your options open and want a lower rate than an open mortgage of the same term. Your prepayment privileges are less flexible than those of an open nature.

The name says it all. A fixed-rate mortgage has its interest set when at the time when the mortgage is taken on by the borrower. The interest will then be fixed at a set rate for the duration of the mortgage term and remain completely unaffected by changes in the market interest rates, or ‘prime rate’. If the prime rate is at 4% when you purchase a mortgage, your interest will be calculated off that, say 5%, and stay at 5% for the duration of the mortgage term.

In most cases, a mortgage will lock the lender into a fixed-rate payment term for the first leg of the mortgage.

After this period, usually 5 years, both the lender and the borrower can reassess the mortgage and engage in another one to finish off the loan in what’s called the amortization period. A 5-year fixed-rate mortgage is also used as the benchmark to determine whether or not a borrower can afford a longer mortgage.

As interest rates will likely change in the meantime, the borrower will need to decide how long this initial fixed-rate mortgage term is based on whether he thinks the interest rate will go up or down. If he thinks it will go down soon, it’s best to get a shorter fixed-rate mortgage term and then reapply at the newer, lower interest rate.

When you opt for a fixed mortgage, there are a lot fewer variables to consider. The only ones that really matter are the actual interest rates and closing costs. When it comes to a variable mortgage, the initial interest rate, possible interest market changes, the introductory period, and the maximum amount of change in the rate per term all plays a role.

Generally speaking, interest rates go up. Even a relatively small rise in the interest rate early on in your mortgage term can have a significant impact on your bottom line. Yes, there is a possibility with a variable interest rate that your payments could go down. However, many people find it preferable to commit to a low rate they find rather than run the risk of a bad surprise down the line.