A fixed-rate mortgage offers stability and predictability. With this type of mortgage, your interest rate remains the same throughout the term, providing you with consistent monthly payments. This is ideal for buyers who prefer a predictable budget and want to avoid any surprises in their mortgage payments.
An adjustable-rate mortgage, also known as a variable-rate mortgage, offers flexibility. With an ARM, your interest rate is initially lower than the market rate, but it can fluctuate over time based on market conditions. This option is suitable for buyers who are comfortable with potential changes in their mortgage payments and believe interest rates may decrease in the future.
A hybrid mortgage combines aspects of both fixed-rate and adjustable-rate mortgages. It typically starts with a fixed rate for an initial period (e.g., five years) and then transitions to an adjustable rate. This option provides a balance between stability and flexibility, allowing you to take advantage of potential interest rate decreases in the future.
In addition to conventional mortgage options, there are various government programs designed to assist first-time home buyers. These programs may offer benefits such as lower down payment requirements, reduced mortgage insurance premiums, and financial assistance. Consult with a Canadian Tailored Mortgage Solutions mortgage broker to explore these programs and determine if you qualify.