5 Year Fixed Mortgage Rates in Ontario

Ontario, Canada is a beautiful place, and it is no surprise that many people look to this picturesque Canadian province as a place to purchase a home. When it comes to buying a house in Ontario, there are a number of factors to consider. From striking the right balance between the metropolitan and the natural, to finding a home that is suited for all seasons, any prospective buyer will have their hands full when it comes to house hunting. While it may not be as enjoyable as choosing the neighborhood or house, deciding on the specific terms of a mortgage is one of the most important aspects of the home buying process.

Figuring out the correct mortgage is a complicated process, and it takes more than a little research to make sure that no money is being left on the table. In Canada, economists from the Bank of Montreal predict that the central Bank of Canada will raise interest rates in the second half of 2014. Given this fact, it wouldn’t be surprising to see 5 year fixed mortgage rates in Ontario become a more popular choice for home buyers. The reason that fixed rate mortgages may see an upswing in popularity is because they offer a measure of security to borrowers against rising interest rates, which can lead to rising monthly mortgage payments. Learn more about calculating payment with the online mortgage payment calculator.

Despite the speculation that rates may rise in Canada in the near future, those looking to buy a home in Canada should take those predictions with a grain of salt. Other sources have cited the practice of economists routinely pushing back their rate increase predictions, as similar talk has been circulating for as far back as three years ago. Economics is an inherently complicated discipline though, and in practice even more so.

Given the fairly strong opinion that interest rates in Canada will increase in the near future, but a lack of consensus on when that will occur specifically, potential buyers should take an even closer look at 5 year fixed mortgage rates in Ontario. The 5 year fixed mortgage rate in Ontario gives borrowers the security of a fixed mortgage rate against increases in the short-term (hopefully protecting against the predictions of an increase in interest rates in the near future), while still giving the some of the flexibility and lower initial monthly payments of a variable mortgage rate.

Choosing a mortgage plan is never a sure thing, as the volatility of the market can always throw an unexpected variable into the equation. With most mortgages spanning decades, the best a borrower can do is to make an educated decision with the information available at the time. Especially given the recent turmoil of that the global financial system experienced at the end of the last decade, there is no “sure thing” when it comes to predicting the future of interest rates. In the end it is up to every borrower to look at their specific circumstances and make decide accordingly. Learn more about adjustable rates in Ontario.

 

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