Many Canadian homebuyers know of long-term mortgage offerings, but not many know that they can take advantage of a one-year mortgage.
In a recent piece for Canadian Mortgage Trends, editor Rob McLister highlighted the benefits associated with a one-year mortgage and shed light on to why it is being overlooked in today's Canadian housing market.
McLister credits the emergence in popularity for 5- and 10-year home loan terms to the extremely attractive rates that are currently being offered for them. However, a one-year fixed mortgage lets the borrower renew into a 4-year fixed any term.
"The challenge with most 1-year terms, compared to variable rates, is that you usually have to wait until three to six months before maturity to secure (hold) your renewal rate," McLister writes. "By contrast, most variable-rate mortgages let you lock in at any time. That makes them preferable to 1-years in certain situations."
The Canadian housing market, and more specifically the Alberta housing market, is experiencing much growth, and Canadian mortgage rates can be had at considerably low levels for qualified buyers. Contact a lender today to learn more.