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September 24, 2021
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Specification: BMO 5-year Fixed Mortgage Rate
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Specification: HSBC 3-year Fixed Mortgage Rate
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Specification: motusbank 5-year Variable Mortgage Rate
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Mortgage Rates in British Columbia can vary a lot based on the institution, rate type & term. Finding the current mortgage rates in British Columbia may seem like a challenge at first. However, Offerhub.ca provides an easy to use interface that lets you find and compare the best mortgage rates in British Columbia.
Are you looking for the best 5-year fixed mortgage rates in British Columbia? Here, we’ll help you to compare mortgage rates from banks and mortgage brokers in BC to help you find the most suitable rate for your needs. Mortgage rates can be fixed or variable. A fixed mortgage means that the rate is set at a specific percentage for the term, while a variable mortgage rate fluctuates according to the market interest rate (also known as the prime rate).
A 5-year mortgage rate depicts the length of a ‘mortgage term’ – essentially, the length of time you commit to a specific mortgage rate. This doesn’t mean that your mortgage will be paid off in 5 years. The time period to pay off the entire mortgage is called the Amortization Period. Think of the mortgage term as a threshold, after which you would need to renew your mortgage for a new term.
One of the biggest advantages of a fixed-rate mortgage is that you’ll always know how much your mortgage payments will be, whether the rates increase or decrease. A fixed mortgage rate will allow you to plan your budget without worrying about your mortgage payments changing for the length of the term. For example, on a 5-year fixed mortgage in BC with a rate of 2.45%, you’ll pay 2.45% interest throughout the term of the mortgage (5 years in this case). Although it may seem like a longer mortgage term offers more stability, it’s recommended to lock in BC’s lowest interest rate for 5 years. However, there’s always the chance that you may end up paying higher interest when variable rates are low.
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Specification: HSBC 5-year Fixed Mortgage Rate
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Specification: BMO 5-year Fixed Mortgage Rate
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Specification: Meridian 5-year Fixed Mortgage Rate (High-Ratio)
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Specification: motusbank 5-year fixed Mortgage Rate – High-Ratio
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A 5-year fixed mortgage is the cheapest mortgage option for anyone who wants to lock in their payments and interest for a suitable term. This fixed-term means that you don’t need to re-finance or risk being charged a higher rate on your mortgage before the 5-year term is over. If you decide to switch to a 5-year fixed mortgage term, most lenders will pay for legal and appraisal fees. However, it’s important to note that you can’t change or switch a collateral charge mortgage or a credit-linked mortgage. When changing lenders, these mortgage types will need to be refinanced.
If your situation is uncertain and you need to break the mortgage before the term ends, you could be subject to a high penalty from the lender. This penalty could be significantly higher, as it’s calculated using the lenders posted rates, as opposed to the actual rate. Also, long-term fixed rates accrue more interest when compared to a variable and short-term fixed rates. Nonetheless, 5 years is a popular mortgage term and about half of all mortgages have 5-year fixed terms. At times when the difference between fixed and variable rates is minimal, most people will choose the stability of a 5-year fixed rate in BC.
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Specification: Meridian 5-year Variable Closed Mortgage Rate
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Specification: motusbank 5-year Variable Mortgage Rate
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Specification: Scotiabank 5-Year Variable-Open Mortgage Rate
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Specification: HSBC 5-year Variable Mortgage Rate – High-Ratio
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A variable mortgage rate changes with the market interest rate (rate set by Government Canada) which is commonly referred to as Prime rate. The changes are stated as prime plus or minus a percentage amount. Prime plus is when the rate increases and prime minus when the rate decreases. The variable mortgage is generally preferred when the prime rate is expected to drop.
Your mortgage payments for a variable rate can be made in the following ways:
When the market rates fluctuate, you will be charged the difference in interest applied to your mortgage principal. For a mortgage payment that is structured so as you pay a fixed sum every month, varying rates will alter the interest and principal portions which will, in turn, affect the mortgage payment schedule.
As a variable mortgage rate typically fluctuates with the Prime Rate, it is perfect for anyone who wants more flexibility to refinance earlier with no penalties. Variable mortgage incurs a cheaper penalty if you choose to break the contract early. Variable rates have historically proven cheaper and cost borrowers less interest compared to long-term fixed rates.
Depending on the lender’s variable rate there are two types of payments:
The most popular floating-rate mortgage in Canada is a 5-year variable mortgage. Although variable rates are harder to get approved especially for anyone whose credit score is not high enough. This is mainly because most lenders require all borrowers to prove they can afford to make the payments at the posted 5-year fixed rate in the case rate increase over the mortgage term.
Variable mortgage rates have been proven cheaper compared to a fixed-rate mortgages over time especially in a falling interest rate economy. Choosing a smaller term is better if you foresee yourself breaking your mortgage within a few years, this will ensure you don’t incur high penalties by the lender.
Finding the best mortgage rates for your needs in British Columbia doesn’t have to be a stressful experience or a difficult one. Offerhub.ca brings all the information you need to one place and updates it regularly so you know you are getting current rates from the most competitive banks, brokers, and lenders.
An interesting fact about the BC mortgage market: nearly 40% of home sales throughout the province are by first-time homebuyers. This is a mortgage shopper’s dream-come-true because major banks, mortgage brokers, and lenders need to be very competitive in order to continue acquiring new business. Competitive rates mean you will have no trouble finding the perfect mortgage or loan for your needs.
If you haven’t compared any mortgages in B.C. yet, let us fill you in. Did you know that our average rates are less than 2% on 5-year fixed-rate mortgages in B.C.? That is over 2% lower than the bank-posted rates, which are usually over 4.5%!
This is a huge amount of savings on the lifetime of your mortgage, especially with the way average house prices are climbing.
Historically speaking, a fixed-rate mortgage is a more secure mortgage. However, variable rates in B.C. have been so low, and seem to be staying there. Because of this, most B.C. buyers that are using our site to compare are opting for variable-rate mortgages and reaping the benefits of big interest savings.
Buying a house means getting the best of British Columbia Mortgages that there are. This, however, is easier said than done. There are just too many plans and rates to compare- and finding the best out of the lot may just be too tedious a task without the right tool. This is where Offerhub.ca comes in. It provides a simple yet highly functional interface to compare mortgage rates British Columbia offers. It also lets you search and sort through these rates on a number of factors and criteria.
Even those who have been in British Columbia for a long time will find it hard to find the best mortgage rates here. This is where British Columbia Mortgage Brokers come in to simplify all that for you. No matter what kind of a house or property you are looking for, the lowest mortgage rates in British Columbia are what you will find with the help of Offerhub.ca. And the best part is that you can do all of that and find out much more about the best mortgage rates in just a few clicks- no need to go anywhere for that!
