Best 5-Year Mortgage Rates Alberta
5-Year Fixed Mortgage Rates Alberta can vary based on the financial institutions. We have compiled a list of the best 5-year fixed mortgage rates currently offered in Alberta from Banks, Mortgage Brokers and Credit Unions.
5-Year Mortgage Rates Alberta
Before you understand how 5-year Mortgage Rates Alberta to work, know that the 5-year term is different from the amortization period. For instance, say, the amortization period is 25 years. This period is the time within which you’ll clear the mortgage payment. However, the 5-year plan is the term for which you’ll pay the agreed interest rate that can be either fixed or variable. At the end of this time, you can work out a new interest payment plan with your lender.
Understanding 5-Year Fixed Mortgage Rates Alberta
Should you opt for the 5-year fixed Mortgage Rate Alberta, you’ll agree on a fixed rate of interest that you’ll pay for 5 years irrespective of the market rates. These interest programs are much preferred in Canada, and they offer you many advantages.
Once you agree on the interest rate, you need not worry about having to make uncertain payments that could make it difficult for you to budget your expenses.
Fixed Mortgage Rate Alberta plans are typically lower and thus, more favourable for you if you’re looking to make payments on a long-term basis.
If you have no intention of selling or refinancing your home within the next 5 years, this plan is ideal.
You can always opt for the variable Mortgage Rate Alberta plans or any other fixed rates that may be for periods of 1 year to 4 years. However, your lender will require you to prove that you can make payments according to the posted 5-year fixed rate. This rate is typically at least 2 percentage points higher than the interest rate for the 5-year fixed Mortgage Rate Alberta.
You can choose to buy the 5-year Mortgage Rate Alberta plan during the market phase when interest rates are low.
You can have a fair idea of the expected interest rates because these figures vary according to the earnings from government bonds.
When you switch to a 5-year Mortgage Rate Alberta, you can expect that your lender will offer to cover the legal and appraisal fees involved. However, this facility is not extended to a mortgage linked to a line of credit or collateral charge mortgage. You’ll have to get them refinanced when you find a different lender.
Opting for 5-year fixed Mortgage Rates Alberta can have downsides too:
You’re likely to incur a higher penalty if you should choose to terminate the plan ahead of schedule. That’s because these penalties are calculated according to the posted rates that banks have in place of actual rates.
Typically fixed Mortgage Rates in Alberta are more expensive and have higher interest rates as compared to the variable Mortgage Rates in Alberta. Though, the markets have noted a downtrend in the last 30 years or so.
Here’s some added information you might interesting:
- About 75% of mortgage seekers opt for the payment plan with fixed rates in place of variable rates.
- There aren’t any significant differences in the interest rates between the fixed and variable plans and may only be about 0.5%.
- You might find that around 50% of mortgages have terms for 5 years depending on the year when they are taken.
Should I choose a Variable Rate or a Fixed Rate Mortgage Rate in Alberta?
Deciding whether or not to go with a variable mortgage rate or a fixed-rate mortgage is one of the biggest factors on how much interest you will pay. Just ask any of the happy Albertans who have used Offerhub.ca to shop for a mortgage and chosen a variable-rate mortgage; they will tell you all about the savings they are enjoying.
Due to our variable rates being consistently lower than fixed rates, half of the Albertans who use Offerhub.ca opt for the variable-rate mortgage. The average savings between a 5-year variable-rate mortgage in Alberta compared to the same fixed-rate mortgage has been at least 0.5%. That may not seem like much, but it sure adds up over time!
How to find the Lowest Mortgage Rates in Alberta?
With Offerhub.ca, you can sort and filter through the lowest mortgage rates in Alberta to find not only the cheapest but also the most suited mortgage plan for your needs. You can look for specific mortgage amounts, pin codes, type of rate and even term to find the ideal plan for your needs!
Mortgage Rate Comparison Alberta
With Offerhub.ca, you can filter out the middleman and do the entire process on your own in just a few clicks. With this, you can find the mortgage plan that YOU want without paying anything extra to anyone. Get all the information about mortgage rates within seconds using Offerhub.ca!
Why should you Compare Mortgage Rates in Alberta?
Looking for the best mortgage rates in Alberta? Offerhub.ca provides the most up to date, current rates, simply choose your Province, select applicable choices and compare the best rates in the industry. Offerhub.ca helps you connect with a mortgage broker who can identify the best deal for your home purchase or mortgage refinancing. Compare mortgage rates in Alberta and get a detailed, accurate comparison of the best mortgage rates in Alberta.
Finding the Lowest Mortgage Rates in Alberta
No matter which province or territory you reside in, finding the best mortgage rate can save you thousands of dollars. Obviously, there are not many people who can purchase property without taking out a home loan. Taking our home loan lets you buy, live in and/or use a home without needing to come up with the full dollar amount at the time of purchase.
Usually, the amount of the loan is equal to the majority of the home’s worth, but the downfall of this is that you will be required to pay interest on the loan. Most lenders insist on a down payment, i.e., a payment equal to a portion of the property’s worth. For instance, if a home is worth $200,000 and the buyer would need to make a down payment of 10%. This would equal a $20,000 down payment ($200,000 x 10%).
To make up the balance, the lender would loan you $180,000 ($200,000 minus the $20,000 down payment).
What are the different rate options available for my mortgage in Alberta?
There are a wide variety of rate options available for rate type and terms. The most popular rates in Canada are 5 Year Fixed, 5 Year Variable & 3 Year Fixed, You should consult your mortgage broker who can help you assist in making the right decision on choosing the rate that would suit your financial situation and needs.
About Mortgage Rates in Alberta
You work hard for your money and there is no reason you should throw it away just so you can buy a house. This is why getting the best mortgage rate possible is so important. A 0.5% or 1% lower interest rate over the length of your mortgage will translate directly into huge savings for you down the road.
Offerhub.ca goes through the work of shopping the most competitive brokers, banks, and lenders in Alberta so you don’t have to. Our comparison tools make it easy for you to see all the options available in one place and help you make the most informed decision. And they are updated daily so you know you’re getting the most up-to-date information possible; all free of charge!
To give you an idea of the possible savings: this year, our 5-year fixed-rate mortgage rates in Alberta have been averaging less than 0.5% lesser than the competition and more than 1.5% less than the same bank-posted averages in Alberta! If you’re wondering how that translates into numbers. Imagine your $400,000 dollar mortgage, and with our rates, you would save more than $100,000 over the life of the mortgage.
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