Best 5 Year Fixed Mortgage Rates Ontario
5-Year Fixed Mortgages are the most popular mortgages in Ontario. Consumers have many options available when choosing 5-year fixed mortgages, so we at CompareMyRates, shop for the lowest rates available in Ontario.
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Advantages of 5-year fixed mortgages Ontario:
Choosing a 5-year mortgage rate in Ontario lets you know exactly how much your mortgage payments will be, regardless of interest rate fluctuations. This makes budgeting easier, with no unpleasant surprises for the length of your mortgage.
- This is the cheapest mortgage available to those who are looking forward to locking into their interest costs and payment for a long period of time.
- Fixed-rate mortgages are suited for those with no plans for refinancing or increasing their mortgage within five years.
- It also suits those who do not qualify for cheaper terms. Most lenders require 1- to 4-year fixed and variable borrowers to prove that they are able to make payments at the 5-year fixed rate benchmark, which can possibly be 2% higher than your actual rate.
We recommend choosing a 5-year fixed mortgage when interest rates are low, since the chance that rates will reduce further is slim. Your mortgage payments will be stable.
Some disadvantages of 5-year fixed-rate mortgages:
The penalties can be much higher for early terminations. Cancel
5-year fixed rate mortgages have cost borrowers more interest historically as compared to a variable and short-term fixed rates.
The popularity of 5- Year Fixed Mortgages in Ontario:
The 5-year mortgage has a popularity of 66% out of all mortgages and is Ontario’s most common mortgage duration. This term sits in the middle of the available mortgage term lengths, that is, between 1 and 10 years, thus has risk-neutral average popularity. The majority of younger borrowers prefer the 5-year fixed mortgage rate in Ontario, while older age groups prefer variable rate mortgages.
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