1 Year Fixed Rates | Our Rate | Bank Rate | ||
Scotia Bank | 6.09% | 6.34% | ||
TD Bank | 6.20% | 0.00% | ||
First National | 6.20% | 6.20% | ||
Mcap | 6.49% | 6.64% | ||
RMG | 6.49% | 6.49% | ||
Lendwise | 0.00% | #REF! | ||
RFA Mortgage | 6.84% | 0.00% | ||
Equitable Bank | 7.44% | 0.00% | ||
CMLS Financial | 0.00% | 0.00% | ||
ATB Financial | 6.49% | 6.69% |
The Benefits of One-Year Fixed Rate Mortgages in Abbotsford and Chilliwack
Many residents in Abbotsford and Chilliwack are not familiar with the one-year fixed-rate mortgage option, with only a small percentage currently utilizing this type of mortgage. However, it offers several advantages compared to other mortgage types.
Understanding the One-Year Fixed Rate Mortgage
A one-year fixed-rate mortgage is a loan where the interest rate remains constant for one year. This stability offers a significant advantage: at the end of the year, you have the flexibility to renegotiate the loan. This feature combines some benefits of an adjustable-rate mortgage, such as renegotiation options, without the risk of a sudden increase in monthly payments. After the year, you can choose to renew the mortgage for another year at the same rate or opt for a longer term, such as five years, to secure the current rate.
Who Is Suited for a One-Year Fixed Rate Mortgage?
This type of mortgage is particularly advantageous for certain homebuyers. It’s ideal for those who may not plan to stay in their home long-term, as it offers flexibility without the penalties associated with breaking a mortgage. This mortgage is also beneficial for individuals whose credit may improve shortly, allowing them to seek better interest rates annually. If you’re considering this type of mortgage in Abbotsford and Chilliwack, consulting with a mortgage broker can provide valuable insights into whether it aligns with your financial goals and circumstances.