Most people tend to feel that things will change only by the tiniest degrees in the next decade or two, which is why being aware of the impact of their terms should take top priority.

Sometimes it is new relationships forming where someone buys a condo or is first time home buyer and single, gets a five-year fixed-rate, but then they meet someone and get married… first of all that usually dictates a change in the residency that they have and if the mortgage is broken..

The penalties involved in terminating fixed-rate loans are harsher than those for variable-rate violations. Going for a longer term can protect borrowers in case of interest rate hikes, but conversely, a prevailing environment of low interest rates—such as the present era—make variable-rate options more appealing (despite these being more expensive at the onset).

Bond yields (which influence fixed-rate products) have seen steady growth since the 2016 U.S. elections. Interest rates around the globe is hiking constantly..

The rate difference between a 5-year and a 10-year mortgage has been hovering between 1.5 to 2 per cent.

That’s a big jump in rate, especially in that initial five-year period, to have to pay just to get that rate for the following five years.

However, while irreducible uncertainty does exist when securing loans, observers emphasized that this shouldn’t stop borrowers from going for the option they prefer.

Ultimately, choosing the right mortgage type and term length is a matter of personal preference and what option best suits customers and their personal needs.

For Better Mortgage of your choice visit us and apply online at @

Vijay Gandhi, Mortgage Broker   

Centum Metrocapp Wealth Solutions Inc.*, License #12147 *Independently owned & operated |

716 Gordon Baker Road, Unit 204A, Toronto, On, M2H3B4

Cell: 647-267-6338

Off: 416-289-2224   Fax: 1-888-813-9403