I was speaking with one of the excellent partners on our lending team last week and she was telling me she recently did a 10 year mortgage for a client, her first!
The current rate to lock in for a whopping ten year term is currently 3.99%. I’ve recently heard discussions on Toronto talk radio about this low rate on the 10 year term. True enough, there has never been a ten year term offered at this low a rate and there probably never will be again.
Is this for everyone? You be the judge. For the first five years of the term penalties can be high for breaking the mortgage. After five years the penalty is 3 months interest. This does not seem unreasonable compared with other products in the market.
Here’s the thing. If you’re looking for stability over the long term, and your life is stable this can be a great product and opportunity to really chip away at your mortgage and have the assurance that for an entire decade your rates will not increase, no matter what happens in the outside world. As you know, rates will go up once the recovery takes hold.
I promised our lending partner that if anyone wanted all the details on this product I would put them in touch with her. That means you. If you’d like more information let me know and I’ll connect you with her so you can get all the details.
If you’re re-financing in the near future or just want to have some long-term security as a new mortgage holder, this may be just the product for you.