Blogger Tribe (Public Tribe)

A necessary step in finding affordable Toronto mortgage rates is to know the different types of mortgages that are available to you.

Fixed Rate Mortgage (FRM) – In a fixed rate mortgage, the interest rate and monthly payment will remain the same throughout the term of the loan even if interest rates change in the prime market. Lenders may offer a fixed interest rate for 1-year, 2-year, 3-year, 4-year and even 10-year terms. There are lenders who will also offer 15-year and 25-year terms. The most popular among borrowers is the 5-year term mortgage. Choosing a longer term will give you the security of having your mortgage payments exactly the same for the entire duration of your loan. These types of mortgages usually have the lowest rates among all other types of mortgages and are the most popular choice among borrowers in Toronto.