If you live in Mississauga and are working towards buying
your first home, you will likely need a loan to finance your purchase.
Residential mortgages offer potential homeowners a means of being one step
closer to owning their own home. Mortgage
in Mississauga offer money for residential mortgages at specific
rates of interest for a mortgage loan on the property. As a borrower, you agree
to repayments on the loan, plus the agreed upon interest rate, over the term of
People living in Mississauga have traditionally turned to
banks for their mortgaging needs. However, this has changed in recent years. An
increasing number of homebuyers are seeking the help of mortgage brokers who
work with a variety of mortgage lenders in Mississauga, including major banks
and mortgaging institutions, as well as through private funds.
Getting a mortgage for your first home is a big financial
commitment with an overwhelming number of options. One of the main questions
you have to answer is what type of mortgage rate to choose. A fixed mortgage
rate is one that does not change over the course of the home loan. Unlike a
variable mortgage rate, a fixed rate will not increase or decrease during the
lifetime of the loan. The fixed rate is based on Government of Canada bond
yields plus any additional expenses mortgage lenders in Mississauga incur. As
with any other financial decision, there are pros and cons to choosing fixed
Benefits of Choosing a Fixed Rate
Fixed rate mortgages are much easier to understand for the
first time homebuyer. With a fixed rate mortgage, a homeowner can accurately
calculate the monthly payments on the loan. Fixed rate mortgages guarantee
payment stability and protect the homeowner against interest rate increases
that can accompany variable rate mortgages. If you like consistency and stability,
a fixed rate mortgage is probably the right choice for you.
Disadvantages of Choosing a Fixed
Choosing a fixed rate mortgage may not always be the best
choice for all homeowners. Although you are guaranteed payment stability and
protection against interest rate increases, opting for a fixed rate also means
you will not have the opportunity to pay less if interest rates decrease. There
is the potential that you could miss out on saving money if interest rates go
lower than the fixed rate you are paying. In order to benefit from lower
interest rates, you would have to refinance your loan, which comes with
penalties and other costs. Also, fixed mortgages may lack the individual
customization that mortgage lenders in Mississauga offer. Most fixed rate loans
tend to be almost identical from lender to lender, making it difficult to find
a loan that is customized to your unique situation.
Homeowners who have a set limit on the total mortgage
payment they can afford will benefit the most from a fixed rate mortgage.
Mortgage lenders in Mississauga can help you determine the maximum amount you
can pay per month for a mortgage. With a fixed rate mortgage, the payment will
not change over the term of the loan.