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3-Year Variable rate mortgage in Canada

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Anita01
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3-Year Variable rate mortgage in Canada  Reply with quote  

The 3-year variable is an alternative to the standard 5-year variable.

People choose 3-year variables for the following reasons:

1. When this term has lower rates than 5-year variables.
2. Because they want more flexibility to refinance earlier with no penalty.
3. When they don’t plan to own the home for more than three years.
4. Because they want a mortgage with a cheaper penalty if they break the contract early.

But, there are some disadvantages for a variable rate mortgage like:
1. Your interest costs can soar if rates rocket higher.
2. Variable rates are harder to get approved for if you have above-average debt ratios.
3. Variable rates have historically cost borrowers less interest than long-term fixed rates

So, we have to consult an expert before taking a 3-year variable rate mortgage in Canada.
Post Mon May 21, 2018 5:43 am
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SusanaP
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Interesting observation  Reply with quote  

Interesting observation. however, I do not see a credit very viable in Canada, because of the variation of the prices of the can dollar to usd, I believe that the exchange rate and the monetary policy of the USA. It is better to consider a credit for three or five years.
Post Mon May 21, 2018 9:49 pm
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