Mortgage Guide: A Look At Fixed Rate Mortgages

We’ve covered how the Windsor real estate market has seen normalization over the summer months. These trends are partially the result of the summer months and partly because of the actions taken by the Bank of Canada by raising the key rates. One of the effects of these changes has been an increase in opportunities for some who have not been successful in finding a home in the market. As more people renew their searches for houses for sale in Windsor, we want to pass along sme mortgage information for you. It is important that you have a pre-approved mortgage before you start viewing Windsor for sale so you know what you can afford. One of the key decisions will be a fixed rate mortgage versus a variable rate mortgage. We’ll be discussing fixed rate mortgages here with variable rate mortgages info to come.

Fixed rate mortgages are highlighted by having stable payments that do not change. Some lenders will let you port and increase your mortgage via a blended rate or refinance with a blended rate to avoid penalties. That is because statistically, most people do not make it through a 5 year term. They’ll move, or need to refinance to access equity for debt, or they consider buying an additional property. Unlike the prime rate that is controlled by the Bank of Canada, fixed rate mortgages are based mostly on bond yields. Typically, bond investments are safer than stocks. When the economy is less stable and stocks look less appealing, the demand for bonds increases and in turn their yield decreases, in a more stable economy, the opposite occurs, less bond investments meaning higher yields as more people invest in higher upside stocks.

This is just some introductory information so you can start thinking about your options. Your best option is to create a base of information and then sit down with a mortgage adviser who can help you sort through your own situation and point you in the right direction. Need a recommendation for a mortgage adviser, reach out and let one of our Jumpers get you in touch with some of the best in the area.

Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, LaSalle, and Chatham, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!