Fixed Rate Mortgages

Fixed rate mortgages are mortgages that offer a set interest rate to you for the entirety of your mortgage term. That means that if you have a five year term, your mortgage interest rate will stay the same for those five years.

Fixed rate mortgages are the most popular of mortgage products because they are lower risk than variable rate mortgages or adjustable rate mortgages, since your interest rate won’t be changing for a set period. Most fixed rate mortgages also have great pre-payment privileges, such as the ability to put up to 20% of your original mortgage principal in extra payments, or the option to increase your mortgage payments by up to 20%.

If you’re looking for the stability and peace of mind that a fixed rate mortgage brings to the table, but aren’t sure how long you’ll be staying in your Calgary home, a five year term isn’t the only length of term available. You can choose pretty much any term between one and five years. Rates for the five year terms are generally the “best deal”, but other term lengths’ rates are also competitive. Some fixed rate mortgages offer even greater mortgage rate savings by removing prepayment privileges.

To find out if a fixed rate mortgage is the right mortgage option to you, speak to your Calgary mortgage broker.