Mortgages 101 – The Complete Guide to Fixed and Variable Mortgage in Ontario
By : Radu Arvatescu
Whether you’re looking for your first home mortgage, a move-up mortgage, or even a commercial mortgage for new investment, understanding the market is the key to success.
Finding the best variable mortgage rates in Ontario is easier when you work with a broker. Our mortgage professionals will help you to find a solution that meets your unique needs and financial situation. If it has been years since your first mortgage or if you’re coming into the market for the first time, this Mortgages 101 guide is for you.
Learn about variable rates, fixed rates, and how a broker can find the best deals on the market through lending networks that the big banks don’t use.
TABLE OF CONTENTS
- What is a Mortgage and How Can Investing be Beneficial?
- Fixed vs Variable Rate Mortgage
- Determining the Right Mortgage Term
- The Benefits of the Lowest Variable Mortgage Rates in Ontario
- The Benefits of 5 Year Fixed Mortgage Rates in Ontario
- How a Broker Can Find the Best Variable Mortgage Rates in Ontario
- Are There Fixed Rate HELOC Loans Available?
- Talk to a Leading Mortgage Broker in Ontario
A mortgage is a specialized type of loan that helps you to buy a property. You can find a fixed or variable mortgage for residential properties as well as commercial properties for investment.
The size of the fixed or variable mortgage that you take out depends on the value of the property that you are purchasing, and how much deposit you will put in before the loan. The higher the deposit, the less you’ll need to borrow. A larger deposit can also bring you the benefit of lower rates and a higher likelihood of acceptance from a lender.
A home is a financial asset and one of the most important investments you will make in your lifetime. If you purchase a property for investment, you could generate long-term returns that help you to meet your financial and lifestyle goals.
Investing in the property market is beneficial, and it’s something that you should consider as you compare fixed or variable mortgages on the market.
A home or commercial property as an investment can:
- Provide long-term growth through appreciation, leading to significant gains at sale.
- Create income throughout the lifetime of your investment, bringing your more financial stability and flexibility.
- Owning a home gives you an asset to leverage, which could help when creating a business in the future. In the future you might wonder are there fixed rate HELOC loans available, we can help you to take advantage of a flexible line of credit.
- If you invest in a home to live in, you’ll have the freedom to customize and improve the home to meet your needs throughout the years. There’s no better feeling than living in a home that is completely yours.
- Owning a home and keeping up to date with payments on a fixed or variable mortgage can help you to maintain and improve your credit score.
People buy homes for the financial freedom and opportunities that are created. It’s no surprise that homeownership is a long term goal for every Canadian. We can help you to move into the home of your dreams or invest in a property that secures your future. With a competitive fixed or variable mortgage, you can make your homeownership goal a reality.
One of the first things you will need to consider when seeking a home loan is whether to choose a fixed vs variable rate mortgage. Both options come with advantages and disadvantages. Only one will be right for your needs.
When working with our expert mortgage brokerage, you’ll be able to explore that market to find mortgages that suit your needs. Lenders offer different rates and terms, but with a broker, you can compare all of the best options through one professional, with all of the expert advice that you will need to make the right decision.
There’s an element of risk and reward in this decision. The best variable mortgage rates in Ontario are attractive because they are often lower than fixed rates. This can make the loan more affordable at the beginning of the term. However, rates can change depending on economic conditions and demand in the market. A variable rate mortgage can change without warning, making repayments higher than they were at the beginning of the term. Of course, rates may also go the other direction, allowing for lower repayments with less interest. A loan could be volatile throughout its lifetime, but many people are happy to trade stability for the hope of saving money without the need to refinance.
5 year fixed mortgage rates in Ontario offer stability because you will know exactly what the rate will be. Even if the rate is slightly higher than a variable mortgage at the time of signing, you will have confidence knowing that it won’t change throughout the duration of the term.
With a better understanding of both, you will be able to make a choice that meets your financial situation today and your expected situation in the coming years. With the help of your mortgage broker, you can evaluate all of your options.
If you need a mortgage but still have questions about the process and the advantages of fixed vs variable rate mortgage, you can talk to a lending expert today.
The term of the mortgage you choose will influence the interest rate and how much your repayments are. A longer term often results in a higher rate, but repayments will be more affordable. If you can stretch to make higher repayments, then a shorter term is suggested.
The most popular option for every age group is 5 year fixed mortgage rates in Ontario. However, terms as short as 6 months and as long as 10 years are available. In some special cases, the term could be even longer, but you won’t find these at the big banks and mainstream lenders. If you need a term longer than what the market typically offers, you will need to speak directly with our mortgage broker team. Unconventional lenders are more likely to offer extended terms, providing certain conditions are met.
Choosing the right term can be difficult. You need a deep understanding of your finances and your willingness to take on risk. The consulting offered by a mortgage broker will help you to make the right decision.
Consider these tips to make a decision that suits your unique needs:
- A longer term introduces a higher amount of risk. There’s a chance that your financial situation could change and you might not be able to make repayments.
- A shorter term comes with less risk, which is preferable if your employment is stable and your living situation is unlikely to change within the next five years.
- A shorter term will also come with lower interest rates, making the loan more affordable.
- A longer term will attract higher rates, but the individual payments will be more affordable.
- When considering fixed vs variable rate mortgage, a longer term introduces a higher level of risk.
Another thing to consider is how you will use your investment. If it’s for business, then a longer term will attract the highest level of risk. 5 year fixed commercial mortgage rates in Canada are ideal because it’s hard to predict the success and stability of a business or investment property.
Our brokers will step you through the risk assessment process while considering your finances and long term goals. With expert consulting, you’ll be able to find a term that is right for you. With the help of a large professional network, a broker will find the lowest variable mortgage rates in Ontario.
There are several important benefits to the best variable mortgage rates in Ontario. If you are looking for a loan and want fast approval with more affordable payments, then a variable interest rate mortgage could be for you.
- The best variable mortgage rates in Ontario fluctuate according to the prime rate, which is the market interest rate set by the Bank of Canada.
- The variable rate is determined by lenders through a discount on the prime rate (e.g. prime rate – 0.50 %).
- Variable rate mortgage payments either fluctuate with the prime rate or the interest portion of the payment varies.
- Lump payments can be made throughout the year, making it easier to pay for a mortgage when relying on inconsistent income.
- Historically, variable rates have proven to be less expensive over time.
- Even if the prime rate increases (which leads to your variable rate increasing), you can lock the variable rate into a fixed rate mortgage at any time, without breaking your mortgage.
If you are buying a home and intend to sell it in a few years (for investment or upsize), a variable rate will offer more flexibility and will often be more affordable. You can take advantage of low short-term rates before selling the home at a profit.
Some uncertainties come with the lowest variable mortgage rates in Ontario, but these are often offset by higher affordability and flexibility. Talk to our brokerage today to find out if a variable rate mortgage would be right for your needs. We have access to the best rates in Ontario and will work to find you a suitable loan with lenders that provide better options than the major banks.
When comparing fixed vs variable rate mortgages, you will find that 5 year fixed mortgage rates in Ontario offer more stability and predictability throughout the loan term.
The biggest advantage of a fixed mortgage is that you will be protected in case interest rates rise in the future. The rate locked in at the beginning of the mortgage is the same one you will pay throughout the term of the loan. If you don’t expect your income to change, then this can offer peace of mind. Budgeting will be much easier while you pay off your loan.
- It will be easier to compare your options when you are looking primarily at 5 year fixed mortgage rates in Ontario, because options from lenders can be evaluated like-for-like.
- In periods of strong economic growth, interest rates are more likely to increase. You will be protected from changes if you have a fixed mortgage.
Of course, there are also downsides, which you will need to consider when consulting with our mortgage brokerage. Fixed rates mean that you won’t be able to take advantage of lower rates in the future. While you could always refinance, this would introduce other costs that offset the difference.
A fixed rate also means missing out on the low introductory offers that come with the lowest variable mortgage rates in Ontario. The repayments at the beginning, middle, and end of the term will be identical.
Fixed rates work in many scenarios. For businesses, 5 year fixed commercial mortgage rates in Canada are often more appealing because they are predictable.
Whatever your needs are, working with a broker will give you access to the best rates, fixed or variable.
You’ve explored the pros and cons of fixed and variable mortgages. If you want the best rates, including the lowest variable mortgage rates in Ontario, you will need to work with an experienced broker.
At our firm, we are committed to finding the most affordable solutions for every client. We aren’t lenders. Instead, we work with a large network of lenders of all sizes. This gives you the benefits of choice and simplicity, without having to explore the market alone.
When you seek a mortgage through a bank or major lender, you will be subject to strict lending criteria. These are designed to protect the banks and make their processes easier and more profitable. You’ll often feel like your options are more ‘cookie-cutter’ than customized, and this is the unfortunate reality. Even if you’ve been with the same bank for many years, your mortgage options could be limited.
Because we operate independently, we can find the best loan for your unique needs and don’t face the same limitations as banks. From 5 year fixed commercial mortgage rates in Canada to unconventional mortgages with longer terms, whatever it is you are looking for, we will find the closest possible fit on the market today.
In addition to lower rates, you’ll enjoy the simplicity of a single application process. We will collect your details and any necessary documentation to ensure that you are pre-qualified. This increases the likelihood of acceptance when you find the right loan.
We advocate for your needs and focus on the desired outcome. We work for you, not for the banks, and this is the biggest difference when choosing to work with a qualified mortgage broker.
We’ve covered loans for homes to live in, as well as 5 year fixed commercial mortgage rates in Canada for businesses. There are also borrowers looking for loans that leverage the equity they already have in their homes. If you find yourself in this category, fixed rate HELOC loans could meet your needs.
If you’ve pondered the question, are there fixed rate HELOC loans, then the answer is a simple yes.
HELOC, or home equity line of credit, is a specialized type of loan that functions similarly to a credit card. You can leverage the equity in your home to withdraw money as you need it. This can be used for home improvements, personal expenses, debt consolidation, education costs, or even business expenses in the case of a commercial loan.
The benefits of a HELOC loan are significant. The costs are usually lower than normal home equity loans. The interest rates are often lower than normal lines of credit because you will be using your home as security. The closing costs are competitive, and you will only be charged for interest on the money that you use.
When looking through the market, it’s normal to wonder are there fixed rate HELOC loans available. Most advertised loans are variable rate, which can be risky in a volatile economy. With our brokerage experience and a large network of lenders, we can find fixed rate terms that are more appealing. With a fixed rate you won’t need to worry about fluctuating repayments and missed payments that could be harmful to your credit score.
Contact us today if you want to learn more about HELOC loans and the options available to you.
Looking for the best 5 year fixed commercial mortgage rates in Canada? A fixed or variable loan for your home? Maybe you’ve wondered are there fixed rate HELOC loansavailable, and want to move forward with exploration.
We are here to help you find an affordable mortgage that suits your needs. We won’t try to fit you into a mortgage that isn’t right for your long term goals. We offer flexibility and the largest lending network with unconventional mortgages that are more competitive than what the banks offer.
Buying a home to live in or for investment is one of the biggest decisions you will ever make. Ensure that the process is smooth and save money by talking to our mortgage broker experts today.
Lowest Residential Mortgage Rates in Canada*
|Term||OUR RATE||TD Bank Rate|
|3 Year Fixed/ 25 yrs||5.99%||6.51%|
|3 Year Variable/ 25 yrs||6.20% Promo||6.70%|
|4 Year Fixed/25 yrs||5.54% Promo||6.29%|
|5 Year Fixed/ 25 yrs||5.54% Promo||6.14%|
|5 Year Variable/ 25 yrs||6.20% Promo||6.90%|
|5 Year Fixed/ 30 yrs||6.05% Promo||6.24%|
|5 Year Variable/30 yr||6.70%||7.05%|
|4 Year Fixed/30yr||6.34% Promo||6.39%|
|3 Year Fixed/30yr||6.24% Promo||6.61%|
|**NEW RENTAL 5 Year Fixed /30yr||6.15% Promo||6.29%|
|** NEW RENTAL 3 Year Fixed /30yr||6.34% Promo||6.66%|
Updated: Aug 23 , 2023
* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion . Rates may vary between geographic regions and the posted rates on this website may not be available in your area.TD Bank rate used for comparable are the rate listed by TD Canada Bank in the Broker Chanel Portal at the date above. Please contact our MCI office for more details and current promotions.
LOWEST REGULAR RATES IN CANADA*
* Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.