The 4 year fixed mortgage rates provide stability to the borrower since the mortgage rate and the payments will remain constant each month. However, this security is the reason why the fixed interest rates are particularly high. This applies for the 4 year fixed mortgage rate as well, though it’s a little bit cheaper compared to the 5 year mortgage rate. It’s important to note that not all 4 year fixed mortgage rates have been created equally, the terms and conditions may vary in addition to interest rate. Making comparisons on all the options will therefore help you make an informed choice
The 4 year fixed mortgage rate is equally not as popular as the 5 year fixed mortgage rate. 4 year rate has a 20% popularity out of all the mortgages, and the popularity is slightly well established among the younger Canadian age groups. About 1 out of 16 borrowers in the country choose the 4 year fixed mortgage rate. It is particularly common among those people who purchase a home for their children in university since the 4 year term corresponds to the length of time a 4 year degree takes.
People in Canada opt for the 4 year fixed mortgage rate due to the following reasons:
4 year fixed mortgage rate also have disadvantages: