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1-year fixed mortgage rates defined for Red Deer residents
If you’re shopping for a Red Deer mortgage, you need to understand the terms involved so that you make the right decision. A 1-year fixed rate mortgage is not a one year mortgage. A one year fixed rate mortgage has the interest rate locked in for the first twelve months. At the end of that first year, you can switch to a new mortgage provider, refinance the mortgage or change mortgage type without any penalty. While it is rare for people to switch from a fixed rate mortgage to an adjustable rate mortgage, many change the loan term so that they balance payments and the rate at which they pay off the loan.
Note that you don’t have to lock yourself into the new loan terms for the duration of the mortgage. Most Canadians opt for a five year mortgage renewal. Then you’re locking in the new mortgage rate for five years. This is the best choice if you think interest rates are going to go up. If you think mortgage rates will fall or that your credit will significantly improve over the next year, renewing the mortgage for another year is an option. One year fixed rate mortgages are ideal for those who may be moving in the next year.
Comparing 1-year fixed mortgage rates
A one year fixed mortgage rate balances stability with flexibility. It gives you time to watch the market with the ability to refinance at the end of the year. However, lenders prefer longer term contracts. Pay attention to market rates and search for the best Red Deer mortgage rates before you renew your 1 year mortgage.
If you have a 1 year mortgage, know that it is uncommon. Roughly one percent of customers have a one year fixed rate mortgage. Talk to a Red Deer mortgage broker to find a lender that offers this mortgage product.