A mortgage is a large financial commitment with an
overwhelming number of options. Deciding which mortgage makes sense can be
difficult. If you are looking for any mortgage related assistance, get help
with Canadalend mortgage options.
The team of financial experts at Canadalend will lead you through each and
every aspect of the mortgage process and ease all the stress that is involved
in the decision making process. Canadalend offers expert advice regarding
mortgage options best suited for you.
When choosing a mortgage, you will have to select between a
variety of different options. This includes the length of time to pay off your
mortgage or amortization period, the length of time that the interest rate and
other options you negotiate will remain in effect, the term of the payment
schedule or if you want an open or closed mortgage. Canadalend will assess your
unique needs and work with you to present the best mortgage options.
One of the most important decisions when looking at
mortgages is the choice between a fixed mortgage and a variable rate mortgage.
Your income, lifestyle, and risk tolerance will weigh heavily on your decision.
A mortgage specialist at Canadalend will evaluate your current financial
situation and help you decide which option is best for your lifestyle and
financial needs. Here is a look at what you can expect from a fixed or variable
A fixed mortgage offers you the security of locking in your interest rate for
the term of your mortgage. You will know exactly how much principal and
interest you will pay. Risk tolerance is low with a fixed mortgage, but you
will pay a premium for the security you get with a fixed rate in the form of
higher interest rates. The downside is that you cannot take advantage of a
lower interest rate and the ability to have more of your payment go towards the
principal and less to interest if interest rates drop during the term. Fixed
rates are affected by the Government of Canada bond
yield for the same term.
Variable Rate Mortgage
With a variable rate mortgage, interest rates will fluctuate with the lender’s
Prime Interest Rate. Variable mortgages typically come with a lower interest
rate than fixed mortgages. Risk tolerance is higher due to the fear of rising
interest rates. Regular mortgage payments are set for the term, even though
interest rates may fluctuate during the term. When interest rates go down, an
increased amount of the payment goes to pay principal. When interest rates go
up, there will be an increase in the portion of payment that goes into paying
interest. Variable interest rates are affected by the prime rate, which is
ultimately affected by the Bank of Canada key
overnight lending rate.
You are not alone in making important mortgage decisions.
Canadalend mortgage options are unique to each client. Mortgage
specialists at Canadalend are highly trained professionals who can work with
you and guide you through the entire mortgage process with personalized service
that is professional and ethical.