A fixed-rate mortgage has an interest rate that stays the same for the life of the loan.
During the term of your mortgage, fixed-rate mortgages are totally unaffected by Canada’s prime rate. The benefit of this type of rate is that you are protected against interest rate changes, so your regular payments will stay consistent throughout the term of your mortgage.
One thing to consider…
While you might find it comforting to know what your payments will be, one of the biggest downsides is the pre-payment penalties can be a lot higher than with a variable rate mortgage.
Get in touch today so that we can review your options!