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Lethbridge 5 Year Fixed
The 5-year fixed rate mortgage is the most popular home loan in Lethbridge. Around three quarters of Canadians have a fixed rate mortgage. Two thirds have a 5-year mortgage term. All of this means that more than half of Lethbridge mortgage customers have a five year fixed rate mortgage.
Why are five year fixed rate mortgages so popular? For home owners, it maximizes their sense of security. You know what your interest rate and house payment will be for five years. The mortgage comes up for renewal every five years, so you only have to go through the renewal process a few times during the life of the loan. Note that you can negotiate the interest rate and loan terms when your 5-year fixed rate mortgage comes up for renewal. Let the mortgage experts at Whalen Mortgages Lethbridge fight for a lower interest rate or better loan terms. We can also help you shop around for a better loan. Renewal is the time to make a change if you’re unhappy with their level of service, and this is the one time you can do so without penalty. Compare this to how often people need to refinance their Lethbridge home loan three years into their mortgage.
Older customers prefer the fixed rate mortgage with a five year term, because they don’t want to risk losing their home because interest rates went up. On the other hand, relatively few younger Lethbridge home buyers opt for a five year variable rate home loan. They tend to choose a one year variable rate loan so that they can buy a house now and refinance in a year, whether interest rates are lower or their personal credit has improved. Lethbridge mortgage lenders offer slightly lower interest rates to variable rate mortgage customers, because they don’t face the risk of losing money because interest rates rose above the interest rate on the fixed rate loan.
If you have a 5-year variable rate mortgage, know that the fees for refinancing to a 5-year fixed rate mortgage are relatively low. It is generally equal to three months of interest on the loan. And a Lethbridge mortgage lender may not charge this penalty, if they want to keep your business.
Talk to a Lethbridge mortgage expert with Whalen Mortgages Lethbridge. Understand the pros and cons of every mortgage product available to you. We can help you save money and protect your greatest asset, your new home.
Call your Trusted Lethbridge Mortgage Brokers at Whalen Mortgages Lethbridge today to get more information.