mortgage simple definition: Is it time to lock your mortgage?

Is it time to lock your mortgage?

Is it time to lock your mortgage?. Lock in Your Mortgage Rate for 90 Days - Keith

Is it time to lock your mortgage? video duration 11 Minute(s) 17 Second(s), published by David So on 29 10 2018 - 21:18:49.

Is it time to push the panic button or can you just push the help button for David So and his Mortgage Centre Team
David So and The Mortgage Centre
Variable Chakits.k@gmail.com Http://www.simplyvegashomes.com.

Should you lock in a mortgage interest rate or should you float your rate
In this video I discuss pluses and minuses to both options Ever wondered if you should lock your mortgage rate? Or even what it means to lock your rate? Doug is here to give you a quick breakdown on this!. Find mortgage rates: www.anthonyvandyke.com/mortgage-rates/ Apply for a mortgage: blink.mortgage/app/signup/p/alvmortgage Anthony VanDyke ALV .

Is it time to push the panic button or can you just push the help button for David So and his Mortgage Centre Team. David So and The Mortgage Centre.

Variable rate by definition does not have any rate guarantee. It floats with the prime rate which indirectly set by the bank of Canada. The rate is often quoted as Prime minus or plus a certain discount. For example. Prime minus 1%. The bank of Canada prime rate is a benchmark for the retail banks to set their rate. On October 24, 2018, the Bank of Canada prime rate is set at 1.75%. Our retail banks set their mortgage prime rate at 3.95%.

The fixed term mortgage on the other hand, is a contract. The interest rate is a contracted rate for the duration of the contract. In the case of a 5-year fixed rate, the interest rate is guaranteed for the duration of the five-year term.

It is a common mistake that most people think the fixed and variable rate go up and down at the same time. It is true for a majority of the time. However, fixed rate mortgage is dictated by the market forces instead of our government. It is heavily influenced by the government issued bonds. As the bond yield increases, the rate will increase as well. Just a brief note, do not confuse bond yield with the bond rate. It is not the same.

So, should we be locking our mortgage into a fixed term now, or wait? The answer is really this, \