Canadian province controls the mortgage and its rates in Canada. Canadian banks play a vital role in the mortgage industry. A study made in 2004 revealed that, these banks cover around 63% of the entire mortgage industry in Canada. People can gain access to the best mortgage rates in Canada by using the Internet. Mortgage buyers can browse through several mortgage web sites, which offer the complete information regarding the best and affordable mortgage rates in Canada.
The Canada Mortgage and Housing Corporation or the CMHC conducts yearly surveys to revise the picture of mortgage market. The CMHC is a recognized bureau of Canadian Government, which guarantees for the best and the lowest mortgage rates offered to Canadians. Various types of mortgage programs with distinctive features and technologies are available in Canada mortgage industry. Canadians may go for any type of mortgage matching their interests.
Mortgage seekers can use the Internet to make a thorough study on the mortgage rates in Canada. Many mortgage web sites offer mortgage rate calculators to compute and compare different rates. This comparison procedure helps to select the lowest mortgage rate.
Various Types of Mortgage Rates in Canada:
Below mentioned are the three major types of mortgage rates available in Canada:
1.Variable mortgage rate: The primary cost of the variable mortgage rate is less than 0.25%. It is very much possible to modify the variable mortgage rates every month. Individuals may capitalize the lowest possible mortgage rate in Canada with variable mortgage rate.
Variable mortgage rate provides two distinctive modes of payment. First, is the fixed mode and second is the variable mode. Fixed mode of payment does not fluctuate for five years. On the other hand, the variable mode of payment fluctuates every month with respect to interest rates and the principal amount.
2.Fixed mortgage rate: This is a traditional type of mortgage, which offers 75% rate of the mortgage benefit. It involves various terms and period options to provide higher flexibility.
3.The Capped mortgage rate: Capped mortgage rate offers long-term security features with flexible term rates. It also offers variable and relevant interest rate per month in concern with the principal amount. The 5-year term in this mortgage rate decides the capped or maximum mortgage rate. It guarantees the best rate to mortgage buyers. Finally, it offers optional payment mode as such variable and fixed payments.
Apart from all these various types of mortgages and their rates, one more type of mortgage is available in Canada it’s the money saver mortgage, which also offers lowest mortgage rates. Money saver mortgage is a 5-year plan with variable interest rates based on the principal amount. Here, it is possible to regulate the mortgage rates and payments in every three month, based on the variations of principal amount. Hence, individuals may save money and pick the lowest rate with the help of money saver mortgage.