FAQs
Your Questions Answered
Should I get a fixed rate or adjustable rate loan?
A fixed rate lets you “set it and forget it” for a peace of mind. The rate you lock in on your commitment will be the same throughout your entire term, meaning your payment will never change.Typically fixed rates run higher and come with a larger penalty to break your policy than that of variable rates. These rates are ideal for people who want a consistent mortgage budget with little risk.
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A variable rate increases and decreases with Bank of Canada’s prime rate, depending on economic circumstances. Variable rates are often lower than fixed rates and come with a substantially lower penalty (3 months of interest + discharge). Historically variable rates have been correlated to more savings and can be beneficial for those who enjoy flexibility and those with a higher risk appetite.
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What should I consider before buying?
1. Do you have stable and consistent income?
2. Do you have sufficient savings for down payment and closing costs?
3. Do you have a good credit score?
4. Do you have little to no debt?
Although all the above requirements aren't considered necessary for an approval, they're determining factors of your approval chances and access to lower rates. If you're interested in knowing more about your chances of being approved, let's chat today!
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When should I refinance?
• access to a lower interest rate.
• pay off high interest debt such as credit cards.
• home renovations.
• eliminate mortgage insurance.
• investments.
• purchase more real estate.