Mortgage Rates
My role is to advise you and help you find the best mortgage product that fits your needs.
Mortgage Rates
Are you looking for the best mortgage rate product in Montreal, on the South Shore, or on the North Shore?
My role is to help you find the best option based on your needs.
When negotiating a mortgage, the rate is important — but even more important are the conditions that come with it.
Today’s Mortgage Rates
*Certain conditions apply.
Fixed or Variable Rate, Open or Closed Mortgage?
A Fixed Rate: As the name suggests, a fixed rate stays the same for the entire term you choose, usually 1, 2, 3, or 5 years. While fixed rates are generally slightly higher than variable rates, they offer the advantage of helping you plan your budget with greater stability.
A fixed rate is right for you if:
- You prefer having the same monthly payments throughout your term;
- You have little room for flexibility in your budget;
- You anticipate a short-term rise in interest rates and want to protect yourself.
A Variable Rate: With a variable rate, your mortgage payments may fluctuate based on rate changes. The rate follows the prime rate set by financial institutions, usually linked to the Bank of Canada's key interest rate.
If the interest rate drops, your payments will decrease for most variable products. Keeping your payments the same is a good way to pay off your mortgage faster. Conversely, if the interest rate rises, your payments will increase. Variable rates are generally lower than fixed rates, but you need to be financially comfortable enough to handle a possible increase.
A variable rate is right for you if:
- You can tolerate unexpected market fluctuations;
- Your financial situation allows you to handle higher payments if rates go up;
- You expect interest rates to drop in the short term and want to take advantage of it.
Home Equity Line of Credit (HELOC)
A home equity line of credit offers a lower interest rate than a regular line of credit. It also allows you to access additional funds as your mortgage balance decreases. The maximum amount you can use is 65% of your property’s current value. This is an open loan where you can choose to pay only the monthly interest. A HELOC can be used, for example, for renovations or to pay off credit cards with higher interest rates. The advantage of this type of loan is that there is no limit to how much principal you can repay, and no penalty for doing so.
What is a Closed Mortgage?
A closed mortgage means there are restrictions. Usually, a closed mortgage is the most popular option because it comes with a lower interest rate. However, the conditions of the mortgage may not be very flexible and may be subject to certain limitations.
Advantages of a Closed-Term Mortgage:
- Lower interest rates;
- Lower borrowing costs over time thanks to reduced interest rates;
- Prepayment options that allow you to pay off your mortgage faster.
Disadvantages of a Closed-Term Mortgage:
- The mortgage terms cannot be refinanced or renegotiated before a certain maturity date without incurring additional fees.
- If you wish to refinance your mortgage or break the loan before maturity, you will face penalty fees.
Main disadvantage: lack of flexibility and significant costs for those wanting to refinance or break the mortgage before it matures.
What is an Open Mortgage?
An open mortgage offers much more flexibility for the borrower. You have the freedom to pay off your mortgage in full at any time without penalties. However, the interest rate will be much higher. This option is recommended for short-term situations.
Choose an open-term mortgage if you expect a sudden influx of money, such as an inheritance, divorce settlement, or the sale of another property. If you want to repay your mortgage with maximum flexibility, an open mortgage is the ideal option.
How to Get a Good Mortgage Rate?
There are almost as many mortgage products (interest rates, terms, conditions, etc.) as there are potential buyers. A good credit score opens the doors to many financial institutions, giving you the opportunity to access more competitive mortgage rates. Rates can vary depending on the lender and the product offered. For example, a 30-year amortization might result in a slightly higher mortgage rate compared to a 25-year amortization. Likewise, a property intended exclusively for rental may see its mortgage rate vary from one lender to another. The mission of your mortgage broker is to find the best mortgage product available for you. Thanks to our in-depth knowledge of lender criteria, we can find the most advantageous offer tailored to your needs for your mortgage rate.
Contact Me
For a mortgage pre-approval, renewal, or refinancing, contact me. We can schedule a phone meeting. You can also fill out the online application form to get a quick response!