To begin with, what does it all mean? Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance: 1) to obtain a lower interest rate 2) to shorten the term of their mortgage 3) to convert from a variable-rate mortgage to a fixed-rate mortgage…
It’s December! At the beginning of November, we discussed the benefits and disadvantages of the variable rate mortgage. A month later, it’s time to talk about the fixed rate mortgage (FRM). The interest rate for a fixed rate mortgage stays the same for the full term of the mortgage. Payments are set…
Last week’s article covered some latest news about the Bank of Canada’s decision to increase the interest rate for mortgages and how it may affect homebuyers. One of the short interviews that was included in the text briefly discussed the difference between fixed rate and variable rate mortgage, but now, you can read more extensively…
A study from the Bank of Canada concluded that those consumers who receive the best mortgage rate are those who are willing to bargain and negotiate, have more equity, are new clients, and who use a mortgage broker, among other variables. As follows, it is rare nowadays that anybody should pay the bank’s posted rate…
