Currently, the Bank of Canada has influence on variable lending rates in Brampton. Since these types of rates depend on the economy the good news is that at least for 2016 variable rates are, and will probably remain, lower than they’ve ever been at only 0.5 percent. The Bank of Canada hopes encourage growth within the economy. Fixed rates on the other hand are not influenced by the Bank of Canada.
Best Mortgage Rates – Fixed vs Variable
It’s not always easy to make a decision when it comes to choosing between fixed and variable rates. Therefore, to find the best mortgage rates in Brampton you should ask yourself the following questions:
1.Do you have the tolerance to take a risk?
2.Can you handle an increase to your current mortgage payments?
3.Do you want an interest rate that can really pay off?
If you’ve answered ‘YES’ to both of the questions above, then a variable rate can certainly prove to be more favorable. This of course depends on the state of the current economy. A variable-rate will enable you to reap on the benefits of a lower interest rate, but these rates can vary – as to why they are called variable rates.
However, if you are more conservative, looking for more stability with your monthly payments, have a set monthly budget, or want to limit your worries, then you’ll want to go with a fixed rate. For instance, if you have a larger mortgage that’s relative to your income a fixed-rate can bring you the peace of mind you are looking for.
We’re sure you have a million questions now, so we’ve put together this list of some of our clients most common FAQs in hopes we can address them now.
3 Most Frequently Asked Questions about Brampton Mortgage Rates:
1.What are the best mortgage rates I can get in Brampton?
Depending on your credit score and risk level, the lower the better, in the eyes of any lender. Keep in mind that even you you qualify and are aiming for the lowest and best mortgage rates possible, the rate is not the most important consideration here. If you choose the lowest-of-low rate, you may also have to sacrifice to get that low rate. Take No Frills Rock-bottom rates for example, they can eliminate, minimize or restrict repayment options and privileges, payment top-up options, closing date deadlines, pre-approvals, free legal fees when transferring lenders, and province availability and portability.
2.What will lenders consider when qualifying me for a mortgage?
When you are being qualified for your Brampton mortgage lenders will consider 6 factors: Your income, debts, work history, credit score and history (700 or greater is recommended for the best mortgage rates), purchase property value, and the amount you plan to pay down (higher down payments can reduce the risk)
3.Which rate is best, a fixed or variable rate?
If you are a first-time buyer then a fixed mortgage may be more suited for your needs. If you can manage fluctuation of rate, while saving money then it’s likely that a variable-rate mortgage is best.
To be sure about which Brampton mortgage rates are best for you or to get help in navigating the process when buying a home, it’s always a good idea to speak to your mortgage broker. They can provide more details surrounding any risks or additional benefits that may be involved here. Call AKAL Mortgages at 416.621.1300 to find out more.
When we say YES! We stand behind our promise.