Calgary Fixed Rate Mortgages

A fixed term mortgage is a mortgage in which you are able to “lock in” an interest rate, so it won’t change for the term you have agreed upon with your mortgage lender. The fixed rate mortgage is the most simple mortgage product, and generally offers a low interest rate. The most popular term is 5 years, however other terms are available, such as 1, 2, 3, 4, 6, 7, and 10 year terms – even terms longer than 10 years (although these are much less common).

Most fixed rate mortgages have flexible mortgage prepayment features, but there are some products on the market that offer an even lower interest rate in exchange for the removal of the prepayment privileges (usually referred to as “No Frills” mortgages). This works well for people who don’t think they will be able to put any extra money towards their mortgage during the fixed term, and would like to cash that in for interest rate savings.

At the end of your term, you are able to renegotiate your Calgary home mortgage (interest rate, new term length, etc.) or repay your mortgage loan in full. You do the renegotiating directly through your current lender, or contact a Calgary mortgage broker to help you out in that department. With the help of your Calgary mortgage broker, you will likely get a better deal on the interest rate, etc.

Overall, the fixed rate mortgage is a great product for Calgarians that like the security of a fixed mortgage rate and knowing what their mortgage payments will be month-to-month, yet still want to take advantage of prepayment privileges.