Toronto, Canada, April 29, 2015 â€“ Canadalend.com , the leading low-cost, private mortgage solution provider in the country, is weighing in on fixed mortgages hitting the lowest posted rates ever as home buyers enter the peak spring house-hunting season in Canada.
One Toronto-based credit union recently announced an 18-month fixed mortgage of 1.49%, which may very well be one of the lowest fixed mortgage rates ever. This ultra-low rate could make Canada’s most expensive housing market even hotter.
“Compared to a typical five-year fixed mortgage rate of 2.59%, the new 1.49% rate will certainly save consumers money but when dealing with financial institutions, there’s always a catch,” says Bob Aggarwal, president of Canadalend.com. But Aggarwal feels it’s important to remember that the new rate comes with a number of conditions.
In addition to being exclusive to residents of Ontario and requiring a fee to join the credit union, home buyers will need to be able to qualify for an increased rate to ensure they can afford the higher rates that kick in when the term is over and the more conventional rates occur. “An 18-month fixed rate might initially look attractive,” says Aggarwal, “But the cost to borrow will climb if rates increase in 2016.”
While the Bank of Canada unexpectedly lowered its overnight lending rate (which impacts mortgage rates) to 0.75% in January, it has been suggested that continued low oil prices and weak economic projections mean the bank will drop its key lending rate again in the near term.
“When it comes to getting a mortgage , there’s more to consider than just the lowest rates,” Aggarwal explains. “With the spring real estate market in full swing and mortgage rates at historic lows, more and more Canadians are looking to step onto the property ladder. This makes it the perfect time for home buyers to contact the licensed, independent agents at Canadalend.com.”
“Because Canadalend.com agents are independent, we have access to hundreds of different lenders. Whether it’s a fixed or variable mortgage, Canadalend.com helps home buyers find the best rates and flexible terms that address both their financial and day-to-day needs,” Aggarwal concludes.
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns. To learn more about Canadalend.com, visit the web site atwww.Canadalend.com .