One-year fixed mortgages are the next best thing to a variable rate. But a one-year term isn’t for everyone.
If you only need a short-term mortgage, that’s one thing. But if you’re trying to save money and not considering long-term rate risk, that’s another.
This week’s Globe and Mail column looks at 1-year mortgages in depth. More at: Meet the One-Year Fixed…
By the way, if you’re looking for the best 1-year rate, some of the lowest at the moment are from:
If you know of any other good 1-year deals, let us know and we’ll post them.
Rob McLister, CMT
Assiniboine credit union has a 6 month fixed at 2.24%. Manitoba only.
Does anyone have an opinion on which of these two options would work out better:
a) One year then 4 year fixed
b) Five year fixed?
I have a great credit score, no debt, good savings, won’t need to refinance and will stay in my house 5 years.
My guess isn’t any better than the next guy, but I bet that rates don’t do much in one year. You’d probably save more with a) assuming you make the same payment as you would on a 5 year fixed.
All in the eyes of the beholder…
When I work with a client who poses a question like this I would ask a few questions which the answers tend to reveal a clients risk tolerance and importance of piece of mind.
Rates are important but having your household properly cashflow is the number 1 priority and this is very individual… after that if you would be relatively unaffected by a rate increase than a risk and reward analysis could be an appropriate way to compare the options.
Good luck on the mortgage planning… PS – Rob or Melanie McLister from this site are great mortgage planners and offline might be able to assist you more specifically!
Thank you again Rob. Congrat’s on your editorial in the Globe and Mail. You deserve it. Your straight forward honest advise represents brokers very well!!
Amen to this Jeff, we are all better off because of CMT!
Hi Jeff and Island Broker,
Very appreciated. Always nice to hear the content is helpful.
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