Tag Archives: variable rate

Mortgage solutions that are flexible and entirely tailored to your reality

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Amid the current housing environment and in light of the wide range of mortgage solutions available on the market, how can you select the product that is best suited to your particular situation?

 

Fixed or variable rate?

When faced with having to choose a mortgage solution, many wonder which is more financially advantageous: a fixed or a variable rate mortgage? Continue reading

A Diversified Mortgage Loan. It’s possible at National Bank!

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The concept of diversification is a crucial element to consider when investing. It is rooted in the very principle that investors should avoid putting all their eggs in one basket.

 

But why should the notion of diversification remain limited to investing? Why not adapt it to mortgages, the largest debt each of us will probably acquire in our lifetime?

 

To meet the needs and preferences of its clientele, National Bank offers the Made-to-Measure mortgage[1]. This solution allows you to divide your loan amount among several layers, depending on your profile, your financial goals, as well as your financing needs and preferences.

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Fixed rates are gaining popularity

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According to a survey conducted on behalf of CIBC Bank at the beginning of March, 50% of Canadians would opt for a fixed mortgage rate today, compared to 39% last year.

At 32%, the popularity of variable rate mortgages has not changed. However, the percentage of people who are undecided has dropped considerably, from 30% last year to 18% this year. Conclusion: most Canadians who were undecided last year opted for a fixed rate given the stability of the interest rate.

Final result: just 6% of Canadians believe that mortgage rates will decrease over the next year, while 86% believe that they won’t change. If they do change, they will go up.

This is good news in the eyes of the CIBC, because it means that many owners took into account a potential increase in interest rates in their mortgage planning, which is a sign of caution. Continue reading

Less Weight on the Shoulders

Given the record debt of Canadian households, BMO Bank of Montreal suggests that owners opt for a mortgage loan with a 25-year amortization period.
“The shorter your mortgage, the less interest charges you’ll pay in the end. By choosing a 25-year amortization period, you free yourself from your mortgage quicker, and you can start to save more for your long-term objectives, such as financing your retirement,” the financial institution explains. Continue reading