There’s no doubt that buying a home or property is a large investment. Therefore, before making an expensive mortgage decision, it’s important to understand both the benefits and possible downsides of your future repayments.
This article will outline the pros and cons of low mortgage rates in Toronto. Consider these variables while trying to choose the right mortgage option for you.
The Pros of Low Mortgage Rates
Lower Installments
One of the main benefits of low mortgage rates in Toronto is that you incur lower monthly premiums. Thus, over time, your payments will ultimately be lower than what they would have ended up with if you opted for a normal or higher rate.
That is why most mortgage experts recommend people buy homes and property while the interest rates are low. Our team at Northwood Mortgage can help you find low mortgage rates in Toronto, ensuring you experience the best rates possible for your needs.
Larger Sized Homes
When interest rates are high, it becomes harder to afford large repayment fees. Typically, this results in needing to purchase a smaller home or property to offset these future costs. However, with low interest rates, these payments become less expensive, meaning you can afford larger—and possibly higher priced—homes without worrying about the long-term costs.
Finding a mortgage can be an overwhelming process, especially for those who are having trouble seeking an option that fits their needs. Whether you’re looking for an affordable fixed rate or a variable mortgage solution, our experts work with you to find low mortgage rates in Toronto.
Increased Chance of Loan Approval
It’s a common misconception that getting approved for a mortgage loan must be difficult. This typically stems from the fact that several financial institutions ask for high rates, making it difficult for some individuals to afford the loan.
However, low mortgage rates in Toronto increase the chances of approval. These lower mortgage rates make buying a home or property more affordable, thus increasing the chances of receiving first-time loan approval.
Our mortgage experts can answer your questions about how different mortgages can affect your finances and help you determine which type is right for you.
The Cons of Low Mortgage Rates
Fewer Savings
Whenever you make an investment (big or small), one of the hopes is to see some sort of return. However, when it comes to low mortgage rates, it can be difficult to save financially due to the lower interest amounts. A low mortgage rate may not be the best option for anyone whose main focus is preserving capital and income.
Our mortgage experts can help you find the lowest rates available on the market, while also determining how much you will manage to save.
Artificial Asset Inflation
With lower interest rates, there’s a possibility that some asset prices might be artificially inflated. Some investors may turn to higher-yield assets such as Real Estate Investment Trusts (REITs) or Master Limited Partnerships (MLPs) due to their potential for higher outcomes.
When considering different mortgages, you may want to calculate how much interest you will pay over time. We have experts who specialize in all types of mortgages, making it easier to help you determine which low mortgage rates in Toronto will be best for you.
How to Find Lower Mortgage Rates
For more information, speak to one of our professionals at Northwood Mortgage today to find low mortgage rates in Toronto. You can call us at 416-969-8130 or contact us here.
