Mortgage Rates in Lethbridge
- Figure out whether fixed or variable is right for you
- Get pre-approved and apply online
- Get the best rate possible in Canada
Fixed vs Variable Rates
Fixed Rate
- Interest rate remains the same for the entire term
- Monthly payments stay consistent, making budgeting easier
- Offers long-term financial stability
- Ideal for buyers who plan to stay in their home long-term
- Protected from interest rate increases
- Often slightly higher initial rates compared to variable options
Variable Rate
- Interest rate can fluctuate with market changes
- Monthly payments may change over time
- Potential for lower interest costs if rates drop
- Better suited for short-term or flexible financial plans
- Opportunity to convert to a fixed rate later in the term
- Typically offers lower initial rates than fixed mortgages
Fixed Rate Mortgages
Fixed rate mortgages often appeal to clients who want stability in their payments, manage a tight monthly budget, or are generally more conservative. For example, young couples with large mortgages relative to their income might be better off opting for the peace of mind that a fixed-rate brings.
Variable Rate Mortgages
A variable rate mortgage often allows the borrower to take advantage of lower rates – the interest rate is calculated on an ongoing basis at a lenders’ prime rate minus or plus a set percentage. For example, if the current prime mortgage rate is 5.5 percent, the holder of a prime minus 0.5 percent mortgage would pay a 5.00 percent variable interest rate.
