It seems that mortgage rates have come down even more with some lenders offering 2.94% on a five year fixed rate, and many others hovering around 3%. This is really good to see in a market like Calgary where prices are at or above the 2007 peak and rising. Prices for single family homes have increased by about 7% from this time last year while apartment style condos and townhouses have increased by around 9%
Lower rates mean that you can afford more of a house and you will pay less interest over the course of that 5 year term. Now the question is do you go with the 5 year fixed rate or do you do a variable rate mortgage which can be had for as low as 2.35% according to mortgage broker Shane Voth. Some people prefer the peace of mind that they get with knowing exactly how much of their payment is going to interest, while others would prefer to take a little more risk and take a chance on rates not rising significantly in the next few years. Traditionally the variable rate mortgage has been the best choice, but now that the 5 year fixed is so close to the variable rate, the question is a little harder to answer.
To find out more information and to check out the latest rates, go to Shane’s website here http://timelesslenders.ca/current-rates
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