| 5 Year Variable Rates | Our Rate | Bank Rate | ||
 | Scotia Bank | 4.60% | 4.80% | |
| TD Bank | 5.04% | #VALUE! | |
| First National | 4.80% | 6.05% | |
| Mcap | 4.65% | 5.45% | |
| RMG | 4.75% | 4.75% | |
| Lendwise | 5.45% | 5.45% | |
| RFA Mortgage | 4.80% | #VALUE! | |
| Equitable Bank | 5.45% | 5.45% | |
| CMLS Financial | 4.80% | 5.10% | |
| ATB Financial | 4.95% | 4.95% | |
Abbotsford and Chilliwack 5 Year Variable Rate Mortgages
In Abbotsford and Chilliwack, a significant portion of mortgages are set for a five-year term, which doesn’t imply the mortgage will be fully paid off in five years. Rather, it indicates that the mortgage is due for renewal at the end of this period. While most homeowners in these areas tend to renew their mortgage by simply reviewing and signing the renewal contract, this time also presents an opportunity to refinance the loan or switch to a different lender. However, it’s observed that only a small fraction of homeowners with a 5-year variable rate mortgage choose to refinance during this period, often opting to secure current low interest rates with a fixed-rate loan.
For fixed-rate mortgages, homeowners in Abbotsford and Chilliwack enjoy the certainty of knowing their exact monthly payments. This period also allows them to explore options for lower interest rates or more advantageous loan terms, like the ability to make double payments.
In contrast, the interest rate for a variable rate mortgage is linked to the prime rate set by the Bank of Canada. The rate charged by banks typically sits slightly above or below this prime rate. For instance, if a bank’s rate is prime minus 0.5% and the prime rate is 2.5%, the interest rate for the mortgage would be 2%. The exact rate may vary based on the borrower’s credit risk.
The underlying interest rate for variable rate mortgages can only change in accordance with adjustments made by the Bank of Canada, which occur every month or two in increments of a quarter percent. Therefore, while the interest rate may gradually increase, it won’t spike suddenly.
If you have a variable rate mortgage in Abbotsford and Chilliwack and are considering switching to a fixed-rate mortgage, the fees for refinancing are generally lower, especially if you remain with the same lender. However, consulting with a mortgage broker like Jodi Smith at Whalen Mortgages Abbotsford and Chilliwack is advisable. Our team can swiftly secure a competitive mortgage offer from our network of lenders, often finalizing a new mortgage within a few days.
Abbotsford and Chilliwack Mortgage Brokers at Jodi Smith at Whalen Mortgages Abbotsford and Chilliwack to get you the best mortgage rates.