Talk to Tim at 403-648-1541

What’s the best five-year variable rate mortgage in Calgary? In our lifetime, there will likely only be a few times Canadian mortgage rates drop as low as they are today. The most recent was in the recession of 2009.

The best mortgage rate you can get in Canada is a five-year variable rate at 1.99%. A lot of people have been joking that mortgages are almost free these days, and with rates like this, it’s hard to disagree. (By the way, the lowest three-year variable rate available in Canada is 2.05%. Not bad.)

Whether you’re buying your first house in Calgary, are picking up a second (or third) property, are considering refinancing your home, or are preparing for a mortgage renewal, this is a great time to consider a very low variable-rate mortgage.

Of course, it’s not always as simple as getting the lowest available rate, plus there are other considerations you should keep in mind. We can discuss these when you come in to see me, but here are a few points that are worth some forethought.

  • Variable-rate mortgages can change any time, depending on market conditions.
  • Variable rates are lower, because they’re based on the current cost of funds.
  • Variable-rate mortgages give you the option for early renewal, which means you can lock in at a fixed rate at any time.
  • Variable-rate mortgages are riskier than fixed rates because their nature is to fluctuate with the times.

On the other hand:

  • Fixed-rate mortgage are more stable and mortgage holders will have the same mortgage cost month-to-month.
  • Fixed rates are locked in, so even if the prime rate drops, your rate stays the same. However, if prime rises, your payments don’t.
  • Fixed rates are great for clients who can’t handle fluctuating mortgage payments or don’t like risk.
  • Fixed rates are also recommended for clients who bought property at the top end of what they can afford.

If you’ve decided on a mortgage that works for you, let’s discuss it and try to find you the best possible rate. Don’t hesitate to contact me today if you have any questions about any of my mortgage services by calling 403.648.1541.