Each day there is the possibility that mortgage rates in Calgary will change. When looking to take out a mortgage, it is important that you make certain you receive the best deal for your individual needs. Mortgage brokers are experts in the field who have the knowledge and experience to make certain you sign for the deal that best suits you. From the inner workings of banks to the current mortgage rates in Calgary, they have the knowledge you need.
One of the things a broker can assist you with is selecting the right type of mortgage for you. There are three primary types of mortgages you might encounter during your search: fixed-rate, adjustable rate, and interest-only. Your broker will be able to look at your needs and desires and then select the loan which is the best fit for you.
Fixed-rate mortgages are loans that have a set interest rate. From the time you sign until you pay off the loan—as long as the loan is paid off within the set time frame—you will be paying the exact same interest rate. This provides the borrower with a bubble of protection from wildly fluctuating interest rates. While this does protect the borrower from the fluctuations going sky high, it also prevents the borrower from capitalizing on lower rates when they become available.
Adjustable-rate mortgages are loans that have a set interest rate for a portion of the agreed upon duration of the loan—usually somewhere around five years. Once that time passes, the interest rate can be adjusted quite frequently—possibly on a monthly basis. Taking out this type of mortgage can be seen as quite the gamble since your rates could potentially skyrocket. At the same time, the rates could stay the same or go lower. These mortgages usually start with an interest rate which is significantly lower than those offered with fixed-rate mortgages.
Interest-only mortgages are loans where the borrower is only required to pay the interest on the loan for a set period of time. This period is determined when the loan is signed and usually falls somewhere in the five year range. Once this period has elapsed, the borrow will need to make monthly payments at a rate that was agreed upon when the loan was granted. This type of loan is generally not considered an option except in special circumstances as it can be a difficult financial adjustment to go from paying only interest to making monthly payments large enough to counteract the years spent paying that low amount.
So, what type of mortgage is right for you? That depends on a wide variety of factors and it might not be best for you to make the assessment on your own. Instead, turn to the expert advice of a mortgage broker to help you think through the process and make the best decision for your personal and financial future. With more than 10 years of experience in the business plus multiple years working on the banker side of things, we can offer you the expertise you need. Contact us at 403-870-2669 and get started today.