Can I change my mortgage from a variable rate to a fixed rate?

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There are a lot of things you need to know when navigating the mortgage world.

And, if you’re not careful, it’s pretty easy to get confused by the lingo, procedures, and payments. (Not to mention the penalties.)

This is why we recruited Jérôme Trail, owner and certified broker at The mortgage path, to answer the most important questions buyers and homeowners need to understand before moving forward with their mortgage process.

Today, Trail offers the answer to the question: “Can I change my mortgage from a variable rate to a fixed rate?


Have another mortgage question or looking for mortgage advice?

Contact Jérôme at the Mortgage Trail – mention STOREYS, and you will receive a free evaluation!


Before we get to the heart of the matter, a quick recap of variable rate mortgages vs. fixed rate mortgages:

“A fixed mortgage rate is a fixed rate (and the associated payment) over the term of the mortgage term, which is typically five years in Canada,” Trail explained earlier this year.

An adjustable rate mortgage, on the other hand, is priced against the lender’s prime rate. This type has the ability to fluctuate – up and down – over the term of the mortgage.

“If the lender’s prime rate goes up, your mortgage rate goes up too” when it comes to a variable rate, Trail said.

45 Radford Avenue, Zolo

Now, speaking of whether or not a borrower can switch mortgage type or not, Trail says the question is common and the answer ultimately comes down to the terms and conditions of the mortgage.

“Most mortgages allow you to go, without penalty, from variable to fixed… but (and there’s usually a catch) you normally lock in the rate posted by the lender for the remainder of your mortgage term. ”

What does it look like in action? Trail explains, “If you are in the second year of your 5-year term, the lender usually allows you to lock in their 3-year fixed mortgage rate from their list of posted mortgage rates.

When it comes to making this type of decision, Trail stresses that it’s important to understand the impact of the mortgage rates posted by the lender before committing.

“If you don’t, you might get sticker shock if and when you want to lock yourself in.”


This article was produced in partnership with STOREYS Custom Studio.

Written by
Jérôme Trail

Jérôme has built a successful mortgage brokerage firm on a commitment to service, attention to detail and honesty. In 2020 alone, he helped 38 first-time buyers climb the real estate ladder. Strong industry connections and business background help her turn refinancing, reverse mortgage, chopper and others into solutions that help grow her clients’ equity and wealth.


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