The biggest thing people want to know about mortgages is obviously the NB mortgage rates. There are different types of mortgage rates that you should know about.
Prime rate is usually referring to the interest rate that large banks charge on short-term loans to their best customers. It is used as a guideline for interest rates. The prime rate has an important role in real estate, because interest rates for a lot of loans, such as adjustable-rate mortgages and home equity lines of credit, go hand in hand to the prime rate. Economic pressures are usually what influence prime rate.
A Fixed Rate Mortgage means that whenever you sign your mortgage you are locked in at that rate for the duration of your whole mortgage. This means that you set the fixed rate, and don’t have to worry about it until the duration of your mortgage is up. A con might be that you could be paying more if the rates ever decrease. A fixed rate is great for people who may need to live on a budget.
A Variable Rate Mortgage means that your rate fluctuates over the period of your mortgage. The good thing is that you usually can start out at a lower rate. The con would be that with your rate fluctuating, it could change with little to no notice. This could result in you paying more in the long run.
Choosing between a fixed and variable rate mortgage can be tricky. It depends if you are the type of person who hates change, if so you should probably choose a fixed rate mortgage. It also could depend on your income, if you don’t have room in your budget for flexibility, a variable mortgage is probably not for you.
The current NB mortgage rates can change with little notice so it’s best if you try and keep up on the current rates. If you would like to talk to one of our mortgage brokers at Team Jardine about NB Mortgage rates, please contact us today!