Is a shorter term fixed mortgage rate the solution?

Historically a 5 year fixed mortgage rate was the most common product. We often see lenders the most competitive with this product. It also makes sense both from the client and the lender as a longer term provides greater stability.

A review of Statistics Canada as of Dec 2023, indicates only 1 in 7 funded mortgages are the 5 year term. This makes sense as many economist are predicting that rates will come down in 2024 so why lock into a longer term. A closer look at pre payment penalties also supports the notion of shorter terms. However in some situations consumers still prefer the stability that longer terms provide.

A mortgage broker can find you the best product for your situation and has access to numerous lenders including mono line lenders who traditional have lower pre payment penalties. A lot to think about as a consumer….let me help you find the right solution for your situation. Shawna