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What You Need to Know about Your Mortgage in Leamington & Tecumseh

When it comes to purchasing a home, whether it’s your first, second or third, one of the most important factors to consider is your mortgage rate. You want to find a home that suits your needs and offers comfort to yourself and your family, but if the home is out of your price range you may need to look elsewhere.

Axiom Mortgage Solutions can help determine your best mortgage rate, offering in-depth explanations about mortgages. Leamington and Tecumseh residents can rely on us for straightforward information. Axiom works with you to get the lowest possible rate in the current market with the best terms and most flexibility, as well as a rate that’s in your budget.

Top 5 Questions to Ask about Your Mortgage

In order to get your best mortgage rate in today’s market, you need to have an understanding of what your mortgage involves.

Below are the top 5 questions to ask about your mortgage in Tecumseh or Leamington:

  • What is the term? – The term is the mortgage contract length. The term can vary from 6 months to 10 years, with the most popular term landing at 5 years. When the term expires, you must renew your mortgage on the remaining principal (amount borrowed you have to pay back). Most Canadians renew their term multiple times during the amortization period. 
  • How long should your amortization be? – The amortization is the length of time it takes to pay off your entire mortgage. Many lenders are now charging more for amortizations over 25 years. 
  • What is the rate type? – There are two rate types, as explained in-depth in the section below. 
  • Are you purchasing, refinancing or switching lenders? – Depending on the answer to this question, your rate will cost more basis points. 
  • Can you pass the government’s “stress test”? – If you plan to get an insured mortgage, you have to prove you can afford a payment at the five-year “benchmark” rate, which is roughly 2 percentage points higher than your actual contract rate.

Deciding between Fixed & Variable Rates 

Mortgage loans come with one of two types of rates: fixed or variable. Understanding the difference between these rates is essential for you to choose the best mortgage. A variable interest rate loan charges interest on the outstanding balance at a rate that varies as market interest rates change. This means that your payments will also vary depending on market rates. Fixed interest rate loans charge a fixed interest rate for your loan’s entire term, no matter what happens to the market rates. This results in consistent payments on your end. 

Choosing the right type of interest rate for your needs will depend on the interest rate environment when your loan is taken out and during the term of the loan. If interest rates are relatively low with an increase on the horizon, your best option is a fixed rate. On the other hand, if interest rates show a pattern of decline, then it would be better to choose a variable rate loan so you can pay the lower rates on your mortgage as the market rates fall.

Current Mortgage Rates

Bank Rates Term
3.00 Variable
3.29 1 Year Closed
3.09 2 Year Closed
3.39 3 Year Closed
3.89 4 Year Closed
4.49 5 Year Closed
5.29 7 Year Closed
5.79 10 Year Closed

As rates change daily, please call for the up to date best rate available

Call Axiom Mortgage Solutions Today

Axiom Mortgage Solutions understands market trends and can help you choose the right mortgage rate for your needs. If you choose us for help with your mortgage in Leamington or Tecumseh, we will help you understand how the different rates, terms and conditions of your loan will affect the lifetime cost of your home or commercial property. Contact us today for a consultation.

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