Why 5-year fixed-rate mortgages are popular in Canada?

5-year fixed-rate mortgages are very popular in Canada. With the increasing demand for housing facilities, people are looking for a mortgage that can help them buy a house without much of a hassle and a 5-year fixed-rate mortgage seems to be a perfect choice. Many financial institutes (banks and private lenders) are offering the best 5 year fixed rate mortgage plans and if you are planning to get one of those, it is important you learn about this mortgage plan first.



Learn about a 5-year fixed-rate mortgage

The primary reason people choose 5-year fixed-rate mortgage over other financing programs is the life of the loan. Even though the life of this mortgage is shorter than a 30-year mortgage or 15-year mortgage plan, the savings for a five-year loan is great. You could end up saving a lot of money with this mortgage plan. However, this loan comes with large monthly payments. So, if your budget allows you to pay a large amount of debt payment, then this is the loan you should go for.

Another benefit of choosing this loan is the fixed debt payment amount. The interest rate of this loan is fixed and that’s why the payment amount doesn’t vary every month. This makes it easy for the borrower to maintain their monthly budget without affecting financial condition in any way. Also, you could opt for an interest-only payment. This will help you save extra money each month.

At the end

A 5-year fixed-rate mortgage can help you save a lot of money and you would not have to deal with a high interest rate. If you wish to get the best 5-year fixed-rate mortgage plan, you can go to the website of RateShop.ca. You can compare 5-year fixed-rate mortgage plans offered by different lenders in Canada. RateShop.ca has been recalled as the top independent brokerage in 2020 by the Canadian Mortgage Professional mortgage firm  

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