CompareMyRates.ca helps you find the current best 2 Year Fixed mortgage rates in Canada in one easy to use location. A right 2 Year Fixed mortgage in Canada can help you save thousands of dollars over the term of your mortgage. With our mortgage rate comparison tool, you get the best mortgage rates in Canada from leading Canadian banks, mortgage brokers Canada & credit unions at a click of a button. Use our mortgage calculator
to calculate your monthly mortgage payments. Compare the Best 2 Year Fixed Mortgage Rates Canada. Below are some of the lowest rates for being offered at this time. Compare between fixed and variable mortgage rates Canada and find the best mortgage rate Canada. There is no obligation and service is completely free.
2 Yr. Fixed Mortgage Rates Canada
The 2 year fixed mortgage rate is a perfect choice of term for those people who don't want to worry about the mortgage rates year after year but need a more than average upfront interest savings. To get this mortgage rate, most lenders will require you to prove that you a payment plan is affordable to you based on a qualifying rate, usually higher poster such as 5 year fixed mortgage rate.
Compare the Best 2 Year Fixed Mortgage Rates in Canada
2 year fixed mortgage rates are suited to people who have good credit, reasonable debt load and an income that is stable and provable. Based on the qualifying rate which is a 5 year fixed rate benchmark as required by the Bank of Canada, all those borrowers who have an equity of 20% or lower must qualify for this term. Most of the lenders in Canada don't pay the legal and the appraisal fees when a borrower switches into a 2 year mortgage rate. By contrast, the lenders are required to pay the legal and the appraisal costs from at least 3 year mortgage term.
How Popular is 2 Year Fixed Mortgage Rates in Canada
Even though the interest rates of the fixed rate mortgages are higher as compared to the variable rate mortgages, about 66% of the Canadian borrowers opt for the fixed rate term. For most of the households, the additional costs as in the case of the fixed rate offers an insurance against the rates that are rapidly rising, hence worth paying.This therefore means that the popularity of the 2 year fixed rate Canada is not as bad, though the 5 year fixed rate term is the most popular in the country.
Pros & Cons of a 2yr Fixed Mortgage Rate Canada
People usually choose the 2 year fixed mortgage rate terms for 3 good reasons:
- The rate and the payment is usually lower compared to most of the other terms.
- The choosers of the term expect a mortgage that is not longer than 2 years.
- This rate gives them a flexible refinancing since one can renegotiate their mortgage sooner with no penalty.
The 2 year fixed mortgage rate also have a few disadvantages:
- Renewal in a two year time means that one may have to incur the switching costs frequently if they change the lenders.
- If the rates jump, one is not protected during renewal as is the case with the long fixed terms.
- In declining interest rate surrounding, fixed rate even if for two years only, will cost more than variable rates.
Get the Lowest 2 Year Fixed Mortgage Rates Canada.
Looking for the best 2 Year Fixed Mortgage Rates Canada? CompareMyRates.ca provides the most up to date, current rates, simply choose your Province, select applicable choices and compare the best rates in the industry.
CompareMyRates.ca helps you connect with a mortgage broker Canada who can identify the best deal for your home purchase or mortgage refinancing. Compare 2 Year Fixed Mortgage Rates Canada and get a detailed, accurate comparison of the best mortgage rates Canada.
Fixed Mortgage Rates vs. Variable Mortgage Rates
Fixed Mortgage Rate Canada: A fixed rate means that your interest rate remains the same (fixed) for the entire term (duration) of the mortgage. Generally, this means the percentage of interest will be a little higher since the lending institution may be losing money in the future if the interest rates rise. A fixed rate mortgage Canada provides a buyer with serenity of knowing the cost of their interest will stay the same over time.
Variable Rate Canada: A variable rate means the percentage of interest that you are repaying will vary based on the changes in the interest rate(s) of the overall market. Typically, fluctuations in your interest rate will not alter your monthly payment, but will vary the amount of your monthly payment that goes towards reducing your principal (original loan amount). This means if overall interest rates go down you will actually be paying off your mortgage in Canada more quickly. On the other hand, if interest rates increase, you will be paying off your mortgage more slowly.
What's the difference between Open Mortgage and Closed Mortgage in Canada
Open Mortgage Rate Canada: An open mortgage in Canada means that the loan can be paid back partially or in full without incurring any penalties. The mortgage can also be renegotiated if market conditions or your financial situation shift. Although an open mortgage in Canada provides more options and opportunities for life adjustments, this comes at a cost, as the interest rates in Canada for this type of loan tend to be higher. For those able to make larger payments or who plan on selling their home within a short period of time; however, an open mortgage can be a solid choice.
Closed Mortgage Rate Canada: The advantage of a closed mortgage in Canada is that the interest rates tend to be lower, but options are limited. Typically a homeowner may make extra payments or larger payments as long as the sum of the payments does not exceed a set amount determined in the loan agreement. Payments exceeding the agreed upon amount; however, would incur penalties. Although most buyers will elect to choose a closed mortgage in Canada, there are advantages to choosing the open mortgage. For instance, if market conditions are expected to change, the type of mortgage should be balanced against the type of interest rate so that as the buyer your needs are met.
Finding the Lowest Mortgage Rates in Canada
No matter which province or territory you reside in, finding the best mortgage rate Canada can save you thousands of dollars. Obviously, there are not many people who can purchase property in Canada without taking out a home loan. Taking out a home loan lets you buy, live in and/or use a home without needing to come up with the full dollar amount at the time of purchase. Usually the amount of the loan is equal to the majority of the home's worth, but the downfall of this is that you will be required to pay interest on the loan. Most lenders insist on a down payment, i.e., a payment equal to a portion of the property's worth. For instance, if a home is worth $200,000 and the buyer in Canada would need to make a down payment of 10%. This would equal a $20,000 down payment ($200,000 x 10%). To make up the balance, the lender would loan you $180,000 ($200,000 minus the $20,000 down payment).
What are the different rate options available for my mortgage in Canada
There are a wide variety of rate options available for rate type and terms. Most popular rates in Canada are 5 Year Fixed Canada, 5 Year Variable Canada & 3 Year Fixed Canada, You should consult your mortgage broker in Canada who can help you assist in making the right decision on choosing the rate that would suite you financial situation and needs.