The best flexibility offered by the best 5 year mortgage rate in Ontario is that the borrower will know exactly how much the mortgage payments will cost regardless of the rate fluctuations. You simply set and forget it. This will ease your budgeting anxiety which follows the 5 yr variable mortgage rates.
When the interest rate is low and spread between the shorter term rate and 5 year term rate is significantly less, it’s recommended that a borrower locks into the 5 year mortgage rate. This is because the longer term will offer you a better stability and since the rates are low historically, chances of rates reducing further with variable rates are very minimal.
The 5 year mortgage rate has a popularity of 66% out of all the mortgages and is Ontario’s most common mortgage rate duration. This term sits in the middle of the available mortgage term lengths, that is, between 1 and 10 years, thus has a risk neutral average popularity.
Moreover, the fixed mortgage rates are the most popular with a 66% penetration. With regard to age dispersion, a larger population of the fixed mortgage borrowers are the younger age groups. This is to say that majority of the younger demographics prefer the 5 years fixed mortgage rate in Ontario. The older age groups prefer the variable rate mortgages.