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<h2>Should I renew or refinance my mortgage?&nbsp;</h2><p>Millions of Canadians are reaching the end of their mortgage term, eager to secure the best possible rate. While many focus on renewing their existing mortgage, they may overlook the possibility of refinancing—a decision that could make a big difference in their financial picture.</p><h3>What’s the Difference Between Renewal and Refinance?<br></h3><p><strong>Renewal:</strong></p><p>At the end of your mortgage term (commonly 5 years), you need to “renew” your loan to keep it active. When you renew, your mortgage balance and amortization period (the total time you have to pay it off) stay the same. You can renegotiate your interest rate, but you can’t borrow additional funds or change the original loan amount.</p><p>Example. You bought a home in June 2020 and had a mortgage of $400,000. After a 5-year term at 1.70%, your outstanding mortgage balance will be around $332,939.71, assuming you haven’t made any extra payments. At this point, you’ll need to renegotiate a new interest rate and choose a new term based on your remaining balance.<br></p><p><strong>Refinance:</strong></p><p>Refinancing allows you to restructure your mortgage. You can change the loan amount, extend the amortization period, and often access your home’s equity. This flexibility gives you the option to lower monthly payments, consolidate debt, or free up cash for other purposes like renovations or investing.</p><p>Example: Say your home’s value has grown significantly since you first purchased it. Through refinancing, you could borrow more against that increased equity, giving you funds to complete a kitchen renovation, start a small business, or pay off higher-interest debts.</p><figure id="figure-w7ab9ec40qm90ec5c5"><img id="w7ab9ec40qm90ec5c5" src="https://cdn.durable.co/getty/136QxgGAP8oAZrRKxhhUOl7cuxLy6DvYHW3jv5BsWPAqdFyUhHow3AXgbBbb2XKn.jpeg" alt="home loan" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/136QxgGAP8oAZrRKxhhUOl7cuxLy6DvYHW3jv5BsWPAqdFyUhHow3AXgbBbb2XKn.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>The Impact of Rising Rates</h3><p>If you locked in a 1.70% fixed rate five years ago, today’s rates—often over 4.50%—may feel like a big leap. Simply renewing might leave you with a payment shock. Refinancing, however, gives you the ability to adjust your monthly obligations, even as rates rise, by stretching out your amortization or accessing equity for financial goals.</p><h3>A Side-by-Side Comparison (Markdown Table)</h3><p>Below is a comparison of a $400,000 mortgage at a 1.70% interest rate (renewal scenario) versus refinancing to a longer amortization period with a higher rate:</p><figure id="figure-x2mle907nlm90ga00w" class=""><img id="x2mle907nlm90ga00w" src="https://cdn.durable.co/blocks/0uquf6UuiJ1QcdelzplSY7eaq6d2oZfr1pdZoIkG5mHWTTneLs4lCWmH536N7Afe.png" alt="" title="" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/0uquf6UuiJ1QcdelzplSY7eaq6d2oZfr1pdZoIkG5mHWTTneLs4lCWmH536N7Afe.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>*Rates are for illustrative purposes only. This is not a commitment to lend, pre-approval or approval. OAC, E&amp;O.&nbsp;</p><p>Note: The monthly payment in the refinance scenario is higher due to the higher rate, but stretching out the amortization period can still offer savings compared to shorter-term loans.</p><figure id="figure-ulk17phtuam90ge34z"><img id="ulk17phtuam90ge34z" src="https://media.gettyimages.com/id/1426010102/photo/refinance-your-mortgage.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=idhBvvzE1onQ4IYU0COvJFpw_USjyms4t-5sX4WbHZ0=" alt="Refinance Your Mortgage" title="Refinance Your Mortgage" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1426010102/photo/refinance-your-mortgage.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=idhBvvzE1onQ4IYU0COvJFpw_USjyms4t-5sX4WbHZ0=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Simplifying the Terminology</h3><p><strong>Amortization Period:</strong>This refers to the total length of time you have to fully pay off your mortgage. For example, a 25-year amortization means your mortgage is structured to be paid in full over 25 years. Choosing a shorter amortization period typically results in higher monthly payments, but you’ll pay less interest overall. A longer amortization period, such as 30 years, reduces your monthly payment but increases the total interest paid over the life of the loan.</p><p><br><strong>Term:</strong><br>The term is the length of your current mortgage agreement with the lender—commonly 1 to 5 years in Canada. At the end of this term, you need to renew or refinance your mortgage for another term at current interest rates and conditions. While the amortization period stays the same, the term allows for adjustments to the rate and sometimes the type of mortgage you have.</p><p><br><strong>Equity:</strong><br>Equity is the portion of your home that you truly own, calculated by subtracting the outstanding mortgage balance from your home’s current market value. For example, if your home is worth $600,000, and you owe $400,000 on your mortgage, you have $200,000 in equity. Refinancing can enable you to tap into this equity for expenses like home renovations, debt consolidation, or investment opportunities.</p><p><br><strong>Payment Shock:</strong><br>This occurs when your mortgage term ends, and you’re faced with significantly higher interest rates. The resulting increase in your monthly payment can come as an unpleasant surprise and impact your budget.<br></p><figure id="figure-njq8znxg14m90gff15"><img id="njq8znxg14m90gff15" src="https://media.gettyimages.com/id/2204905195/photo/real-estate-trading-and-wooden-scales-and-percentage-signs-buying-and-selling-mortgage.jpg?b=1&s=2048x2048&w=0&k=20&c=DVKefaD7lXFJefnYJRXDUvAysrhMwkeliHQW2lE7bcs=" alt="Real Estate Trading and Wooden Scales and Percentage Signs, Buying and Selling Mortgage Interest Concept" title="Real Estate Trading and Wooden Scales and Percentage Signs, Buying and Selling Mortgage Interest Concept" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure><h3>In Summary</h3><p>When faced with renewal, don’t just look at the rate. Consider your overall financial goals. Do you need to borrow additional funds? Are you trying to reduce monthly payments? A refinance may give you more flexibility and options than simply renewing. By understanding the differences and terminology, you can make a well-informed decision that best fits your long-term financial plan.</p><p>If you’re unsure which option is right for you, let’s connect. I can help you understand your choices, find the best rates, and create a mortgage strategy tailored to your needs. Reach out today to explore what’s possible!</p><p><br></p>

Renew vs. Refinance: Making the Best Choice for Your Mortgage

<h2>📢 Bank of Canada Update: Let’s Clear Things Up!</h2><p>You’ve probably seen the headlines: “Bank of Canada lowers rate to 2.75%!”</p><p>Sounds exciting, right? But let’s break down what it really means for your mortgage.</p><h3>🚨 That 2.75%? It’s Not Your Mortgage Rate</h3><p>That number refers to the overnight lending rate — the rate banks use to lend money to each other. It’s important, but it’s not the rate you’ll see on your mortgage.</p><figure id="figure-m61h5fm4kdm91igtcy"><img id="m61h5fm4kdm91igtcy" src="https://media.gettyimages.com/id/2165969191/photo/sticky-note-with-word-why-and-question-mark.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=VHv2mtOHvIWoiEHU_NJEsrPy7OK4rjNXrhaAcKdMZ_c=" alt="Sticky note with word why and question mark" title="Sticky note with word why and question mark" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2165969191/photo/sticky-note-with-word-why-and-question-mark.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=VHv2mtOHvIWoiEHU_NJEsrPy7OK4rjNXrhaAcKdMZ_c=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>What Actually Matters to You:</h2><h3>✔️ Prime Rate is now 4.95%</h3><p>This is the key number for variable and adjustable-rate mortgages.</p><h3>✔️ Fixed Rates?</h3><p>They’re influenced by the bond market, not the Bank of Canada’s decisions. So if you’re in a fixed-rate mortgage, you won’t see an immediate change.</p><figure id="figure-ukk80vabvhm91io8ox"><img id="ukk80vabvhm91io8ox" src="https://media.gettyimages.com/id/954984418/photo/so-many-demands-and-deadlines-are-closing-in-on-him.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=ZdEL_rM5P6Tm6kbJAK8s8wxKA5_n_tQIGshXPfBJpM0=" alt="So many demands and deadlines are closing in on him" title="So many demands and deadlines are closing in on him" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/954984418/photo/so-many-demands-and-deadlines-are-closing-in-on-him.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=ZdEL_rM5P6Tm6kbJAK8s8wxKA5_n_tQIGshXPfBJpM0=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>What Does This Mean for You?</h3><ul><li><strong>Fixed-Rate Mortgage:</strong> Your rate and payments remain <strong>unchanged.</strong></li><li><strong>Variable or Adjustable-Rate Mortgage:</strong> Your <strong>interest rate</strong> (and possibly, your payment) may shift depending on your lender and mortgage terms.<br></li></ul><h3>Questions About Your Mortgage?</h3><p>Let’s connect. Whether you’re wondering how this affects your current mortgage or thinking about next steps, I’m here to help.</p><p>📩 Message me anytime — I’ll walk you through it.</p><figure id="figure-1n2tfm0m4m91igypz" class=""><img id="1n2tfm0m4m91igypz" src="https://media.gettyimages.com/id/1257571460/photo/lets-discuss-directional-sign-on-the-yellow-wall-background.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=wMLurkuDHoTGlPIyUGgv9XySP3STCgV2xDQUgcNJgO4=" alt="Let’s Discuss Directional Sign On The Yellow Wall Background" title="Let’s Discuss Directional Sign On The Yellow Wall Background" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1257571460/photo/lets-discuss-directional-sign-on-the-yellow-wall-background.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=wMLurkuDHoTGlPIyUGgv9XySP3STCgV2xDQUgcNJgO4=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p><br></p>

📢 Bank of Canada Update: Let’s Clear Things Up!

Investment Concept - 2025 And House Symbol On Blue Financial Graph Background

<h2>Understanding the Renewal Offer</h2><p>When your mortgage term is up for renewal, your bank will send you an offer. It might seem convenient to just sign and return it, but here’s the truth – <strong>you don’t have to accept it!</strong> In fact, blindly renewing with your bank could be <strong>costing you thousands of dollars in unnecessary interest.</strong></p><figure id="figure-ngdmyhd9x6m6wh7d5f"><img id="ngdmyhd9x6m6wh7d5f" src="https://media.gettyimages.com/id/493735954/photo/fall-savings-piggy-bank-amongst-fall-leaves-with-copyspace.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=zbfX135ndyFKbvBt0DYH8gW7WweidvGN6Hvsc1g4Cu4=" alt="Fall Savings. Piggy bank amongst fall leaves with copyspace" title="Fall Savings. Piggy bank amongst fall leaves with copyspace" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/493735954/photo/fall-savings-piggy-bank-amongst-fall-leaves-with-copyspace.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=zbfX135ndyFKbvBt0DYH8gW7WweidvGN6Hvsc1g4Cu4=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>The Smart Way to Renew Your Mortgage</h2><p>Most homeowners assume their bank is giving them the best possible deal. But banks count on you not shopping around – and they make billions from homeowners who simply renew without asking questions. <strong>Don’t let them win!</strong></p><h2>Here’s what you need to know about mortgage renewals:</h2><p><strong>✅ You’re NOT obligated to accept your bank’s renewal offer.</strong></p><p><strong>✅ You can shop around for a better rate with any lender.</strong></p><p><strong>✅ A mortgage broker does the shopping for you – at no cost!</strong></p><p><strong>✅ Lowering your rate could save you thousands over your next term.</strong></p><figure id="figure-q2r3ecbqjam6wh7iij"><img id="q2r3ecbqjam6wh7iij" src="https://cdn.durable.co/getty/18zau1F1y7Vrr11kDagBZuzVN68YCtw8PWJJvGDRgjvlNgHCXgMk6lmG5IoRLkE9.jpeg" alt="compare mortgage rates" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/18zau1F1y7Vrr11kDagBZuzVN68YCtw8PWJJvGDRgjvlNgHCXgMk6lmG5IoRLkE9.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Why Work with a Mortgage Broker?</h2><p>As a mortgage broker, my job is to compare offers from multiple lenders and negotiate on your behalf. I ensure you’re getting the <strong>best possible rate and terms</strong>, not just what your bank is offering.</p><p><strong>And the best part? My services are completely FREE!</strong></p><h2>Don’t Leave Money on the Table – Let’s Review Your Renewal</h2><p>A simple mortgage review could save you <strong>thousands of dollars.</strong> Before signing anything, let’s talk! I’ll go over your renewal offer, compare it to other options, and make sure you’re getting the lowest rate possible.</p><p><strong>📞 Call/Text: 647-559-6169</strong><br><strong>📧 Email: mrtg@jessehazen.ca</strong><br><strong>🌎 Visit: jessehazen.ca</strong></p><h3 style=""><strong>Book your FREE mortgage renewal review today and see how much you can save!</strong></h3><p style=""><a data-mce-href="https://calendly.com/mortgagewithjesse/discovery-call-new-mortgage" href="https://calendly.com/mortgagewithjesse/discovery-call-new-mortgage" target="_blank" rel="noopener"><strong>BOOK HERE</strong></a></p><figure id="figure-jhp69nqaffm6wh7m7g"><img id="jhp69nqaffm6wh7m7g" src="https://cdn.durable.co/getty/1d95jQT5q979RYHMXyRoz28h8wOuNw8obLCqrckHvnSBtTxKQ296u1T8mUQcnuWx.jpeg" alt="calendar reminder" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/1d95jQT5q979RYHMXyRoz28h8wOuNw8obLCqrckHvnSBtTxKQ296u1T8mUQcnuWx.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><p><br></p>

Your Bank's Renewal Offer Could Be Costing You Thousands

<h2>Understanding Toronto's Real Estate Landscape</h2><p>Toronto is a bustling metropolis known for its vibrant culture, diverse communities, and thriving economy. For first-time buyers, navigating the real estate market in Canada's largest city can be daunting. However, choosing the right neighbourhood can make all the difference in finding an affordable and welcoming place to call home.</p><figure id="figure-g310fkp38um6mamjso"><img id="g310fkp38um6mamjso" src="https://media.gettyimages.com/id/1793668126/photo/toronto-downtown-cityscape-canada.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Z7a53V3qvMCaorx3HT1CC-MYHXi3Pxr0SnXsO2EEY9E=" alt="toronto skyline" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/1793668126/photo/toronto-downtown-cityscape-canada.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Z7a53V3qvMCaorx3HT1CC-MYHXi3Pxr0SnXsO2EEY9E=" data-mce-style="aspect-ratio: 16/9;"></figure><h2>East York: A Family-Friendly Gem</h2><p>East York offers a unique blend of urban and suburban living, making it an ideal choice for young families and first-time buyers. Known for its cozy homes, tree-lined streets, and strong sense of community, East York provides a peaceful environment while still being close to downtown Toronto. The availability of parks and schools adds to its appeal for those with children.</p><p>Moreover, East York's public transportation options, including bus routes and subway access, make commuting relatively easy. The area's affordability compared to other Toronto neighbourhoods makes it a popular choice among budget-conscious buyers.</p><h2>Leslieville: A Trendy Hotspot</h2><p>For those who crave a more vibrant atmosphere, Leslieville might be the perfect fit. This trendy neighbourhood is known for its eclectic mix of shops, cafés, and art galleries. Young professionals and creatives are drawn to Leslieville for its unique charm and lively community events.</p><p>Leslieville's proximity to downtown Toronto makes it an attractive option for those who work in the city centre but desire a more relaxed living environment. The neighbourhood's real estate market offers various housing options, from modern condos to charming Victorian homes.</p><h2>The Junction: A Bohemian Retreat</h2><p>Once an industrial area, The Junction has transformed into one of Toronto's most sought-after neighbourhoods for first-time buyers. Known for its Bohemian vibe and vibrant arts scene, this area attracts young professionals and families alike. The Junction is home to numerous cafés, restaurants, and boutique shops, creating a lively community atmosphere.</p><p>This neighbourhood offers relatively affordable housing options compared to other parts of Toronto, with a mix of historic homes and new developments. The Junction's strong sense of community and unique character make it a compelling choice for those seeking an alternative to more traditional neighbourhoods.</p><figure id="figure-n1ed7utfyqm6mamjso"><img id="n1ed7utfyqm6mamjso" src="https://media.gettyimages.com/id/1153500183/photo/toronto-busy-richmond-street-and-spadina-avenue-corner-on-a-rainy-day.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=ysxIpLQL4YY0E2Lqrg0H22PqgO3ZQdbzodPH50trZRI=" alt="the junction toronto" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/1153500183/photo/toronto-busy-richmond-street-and-spadina-avenue-corner-on-a-rainy-day.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=ysxIpLQL4YY0E2Lqrg0H22PqgO3ZQdbzodPH50trZRI=" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Scarborough: Affordable Suburban Living</h2><p>Scarborough is an excellent option for first-time buyers seeking more space and affordability. Located in the eastern part of Toronto, Scarborough offers a suburban feel with plenty of parks, schools, and recreational facilities. The area is known for its cultural diversity and welcoming atmosphere.</p><p>Housing in Scarborough is generally more affordable than in central Toronto, providing first-time buyers with a range of options from town homes to detached houses. The neighbourhood's convenient access to public transit makes commuting to other parts of the city manageable.</p><h2>Conclusion: Finding Your Perfect Fit</h2><p>Toronto offers a multitude of neighbourhoods that cater to the diverse needs and preferences of first-time buyers. Whether you're looking for a trendy urban environment or a quiet suburban retreat, the city has something for everyone. By considering factors such as affordability, lifestyle preferences, and proximity to work or family, you can find the perfect neighbourhood to start your journey as a homeowner in Toronto.</p><p>Let's get you pre-approved for your mortgage now!</p><p><a data-mce-href="https://jessehazen.mtg-app.com/signup" href="https://jessehazen.mtg-app.com/signup" data-mce-selected="inline-boundary">APPLY HERE</a></p>

The Best Neighborhoods in Toronto for First-Time Buyers

Seesaw Scale with Percentage Sign and Puzzle House on Chalkboard Background - 3D Rendering

<h2>A Simple Breakdown of Fixed, Variable, and Adjustable-Rate Mortgages</h2><p>With mortgage rates being a hot topic over the past few years, deciding on the right mortgage type can feel overwhelming, especially with so many choices available.</p><p>Whether you’re a first-time homebuyer or considering refinancing, understanding how fixed, variable, and adjustable-rate mortgages (ARMs) work can help you make a confident decision.</p><p>Here’s a straightforward guide to these options.</p><figure id="figure-jliyir1j3m6qtdqnr"><img id="jliyir1j3m6qtdqnr" src="https://media.gettyimages.com/id/2158470310/photo/a-gold-dollar-sign-and-a-small-house-model-are-placed-on-opposite-sides-of-a-balance-scale.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=ABOAZPb9MlIdLFM7HU54wmRKmGGx50tZkKKEKFZwdxA=" alt="A gold dollar sign and a small house model are placed on opposite sides of a balance scale where house weighs more than the dollar. House Investment Concept." title="A gold dollar sign and a small house model are placed on opposite sides of a balance scale where house weighs more than the dollar. House Investment Concept." class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2158470310/photo/a-gold-dollar-sign-and-a-small-house-model-are-placed-on-opposite-sides-of-a-balance-scale.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=ABOAZPb9MlIdLFM7HU54wmRKmGGx50tZkKKEKFZwdxA=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Fixed-Rate Mortgages: Stability and Predictability</h3><p>Fixed-rate mortgages remain a go-to option for many borrowers. In fact, a 2024 consumer survey by Mortgage Professionals Canada found that 75% of borrowers selected a fixed-rate mortgage. However, as the Bank of Canada introduced rate cuts later in the year, interest in variable rates started to rise.</p><p>Unlike variable or adjustable-rate mortgages, fixed-rate mortgages are not directly affected by changes to the Bank of Canada’s policy rate. The interest rate remains the same for the entire term, keeping monthly principal and interest payments consistent, making budgeting easier.</p><p><strong>Who Should Consider a Fixed-Rate Mortgage?</strong></p><p>This option is ideal for borrowers who value stability and plan to stay in their home for at least the duration of their mortgage term. It’s also a solid choice if you anticipate interest rates increasing.</p><p><strong>Advantages:</strong></p><p>✔ Predictable monthly payments throughout the term</p><p>✔ Protection from rising interest rates</p><p><strong>Things to Keep in Mind:</strong></p><p>➤ Typically, the starting rate is higher than variable or adjustable options</p><p>➤ Breaking the mortgage early often results in higher prepayment penalties</p><p>➤ Less flexibility if rates drop during your term</p><figure id="figure-yq0yc476im6qtp44p"><img id="yq0yc476im6qtp44p" src="https://media.gettyimages.com/id/2189153036/photo/gold-coins-and-home-icon.jpg?b=1&s=2048x2048&w=0&k=20&c=VtElTHCx_iH6pqRTxv9esI8Ql9c9aV5kdM_CGutaQek=" alt="Gold Coins And Home Icon" title="Gold Coins And Home Icon" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure><h3>Variable-Rate Mortgages: Potential Savings with Some Risk</h3><p>With a variable-rate mortgage (VRM), your interest rate fluctuates based on your lender’s prime rate, which follows the Bank of Canada’s policy rate. While your monthly payment may remain fixed, the portion allocated to interest versus principal will shift as rates move up or down.</p><p><strong>Who Should Consider a Variable-Rate Mortgage?</strong></p><p>This option suits borrowers who are comfortable with some level of risk and believe interest rates may remain steady or decline during their term. It can also be a strategic choice for those considering selling or refinancing before the term ends, as variable-rate mortgages typically have more predictable penalties than fixed-rate mortgages.</p><p><strong>Advantages:</strong></p><p>✔ Historically lower rates compared to fixed mortgages</p><p>✔ Opportunity to save when rates decrease</p><p>✔ More predictable prepayment penalties</p><p><strong>Things to Keep in Mind:</strong></p><p>➤ Monthly payments may rise if interest rates go up</p><p>➤ Requires comfort with financial uncertainty</p><figure id="figure-67rzvlp4lm6qtdty2"><img id="67rzvlp4lm6qtdty2" src="https://media.gettyimages.com/id/1456060797/photo/real-estate-investment.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=pjLggwMAHm81cKzEgIUIDVEbBRFmyAyGtNC4EW1P_m0=" alt="Real Estate Investment" title="Real Estate Investment" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1456060797/photo/real-estate-investment.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=pjLggwMAHm81cKzEgIUIDVEbBRFmyAyGtNC4EW1P_m0=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Adjustable-Rate Mortgages: Flexibility with More Frequent Changes</h3><p>Not all lenders in Canada offer adjustable-rate mortgages (ARMs), but some do, including Scotiabank and National Bank, along with select Mortgage Finance Companies. An ARM differs from a VRM in that both your interest rate and monthly payment fluctuate with changes to your lender’s prime rate. While VRM payments typically remain stable while the interest-to-principal ratio shifts, ARM payments adjust immediately—often within 30 days—when prime changes.</p><p><strong>Who Should Consider an Adjustable-Rate Mortgage?</strong></p><p>This type of mortgage may be appealing to borrowers who want lower initial rates and have the financial flexibility to handle payment changes. Like VRMs, it can be a good option for those who may sell or refinance before the term is up, as penalties tend to be more predictable than with fixed-rate mortgages.</p><p><strong>Advantages:</strong></p><p>✔ Generally starts with a lower rate than fixed and variable options</p><p>✔ Potential for lower payments when interest rates drop</p><p>✔ Predictable prepayment penalties</p><p><strong>Things to Keep in Mind:</strong></p><p>➤ Payments can rise quickly if prime rate increases</p><p>➤ Less predictable monthly budgeting</p><figure id="figure-vpadpamc0mm6qtdvi4"><img id="vpadpamc0mm6qtdvi4" src="https://cdn.durable.co/getty/bgVxxkum3pMVLfNX9hJqD2ocgORUAtWR5KgNcl4pVSitROdaTMvMtthBKVD4xluK.jpeg" alt="financial planning" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/bgVxxkum3pMVLfNX9hJqD2ocgORUAtWR5KgNcl4pVSitROdaTMvMtthBKVD4xluK.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Which Mortgage Type is Best for You?</h3><p>Deciding between these mortgage options depends on your financial goals, risk tolerance, and how long you plan to stay in your home. A fixed-rate mortgage provides stability and peace of mind, while a variable-rate mortgage offers potential cost savings with some uncertainty.</p><p><strong>Let’s Find the Best Fit for You</strong></p><p>Choosing the right mortgage is an important decision, and I’m here to help. Whether you prioritize security or are open to taking a calculated risk for potential savings, I’ll guide you through the process.</p><p>📩 Get in touch today to explore your mortgage options and make an informed choice.</p><p>Book a call <a data-mce-href="https://calendly.com/mortgagewithjesse/discovery-call-new-mortgage" href="https://calendly.com/mortgagewithjesse/discovery-call-new-mortgage" target="_blank" rel="noopener">HERE</a> and we can review your options!&nbsp;</p>

Understanding Fixed, Variable, and Adjustable-Rate Mortgages: A Simple Guide

Canadian money house real estate mortgage

<h2>Understanding the Interest Rate Cut</h2><p>Today, the Bank of Canada announced a 25-basis point reduction in its policy rate, bringing it down to 3.00%. This marks the sixth consecutive rate cut, and it will lead to a decrease in the prime rate, which directly impacts variable-rate mortgages and other loans.</p><p>Most lenders are expected to adjust their prime rates to 5.20%, with TD Bank’s mortgage prime likely dropping to 5.35%.</p><figure id="figure-5ag6ltn1zim6i8l3qa"><img id="5ag6ltn1zim6i8l3qa" src="https://media.gettyimages.com/id/2155220987/photo/canadian-flag-at-the-waterfront.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=YJ8adi5q87sILMhG0u9Fh0uWUZgE6XEcUuhJfxSej9Y=" alt="Canadian Flag at the waterfront" title="Canadian Flag at the waterfront" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2155220987/photo/canadian-flag-at-the-waterfront.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=YJ8adi5q87sILMhG0u9Fh0uWUZgE6XEcUuhJfxSej9Y=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>How This Affects You</h2><p>• <strong>Variable-Rate Mortgage Holders</strong>: If your payments are fixed, a larger portion will go towards paying off your principal balance. If your payments adjust with the prime rate, you could see your monthly payment drop by about $14 per $100,000 of mortgage debt (on a 25-year amortization).</p><p>• <strong>Fixed-Rate Mortgage Holders</strong>: Your payments remain unchanged, so you won’t see any immediate impact.</p><p>• <strong>Other Loans Tied to the Prime Rate</strong>: If you have a personal loan or line of credit, you can expect a decrease in interest charges.</p><figure id="figure-fbisiz4ps9m6i8l6vh"><img id="fbisiz4ps9m6i8l6vh" src="https://cdn.durable.co/getty/136QxgGAP8oAZrRKxhhUOl7cuxLy6DvYHW3jv5BsWPAqdFyUhHow3AXgbBbb2XKn.jpeg" alt="house keys mortgage" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/136QxgGAP8oAZrRKxhhUOl7cuxLy6DvYHW3jv5BsWPAqdFyUhHow3AXgbBbb2XKn.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Looking Ahead</h2><p>The Bank of Canada’s next rate decision is set for March 12, and we’ll see plenty of economic data between now and then that could impact their decision.</p><p>As always, if you have questions about how this change could affect your mortgage or want to explore your options, I’m here to help!</p><p><strong>Apply Today</strong></p><p>If you’re considering refinancing or want to explore your mortgage options, now could be a great time to act. Click <a data-mce-href="https://jessehazen.mtg-app.com/signup" href="https://jessehazen.mtg-app.com/signup" target="_blank" rel="noopener">here</a> to apply or get in touch, and I’d be happy to help you navigate this rate change and find the best solution for your financial goals.</p><figure id="figure-oiwr9gn754m6i8sdyo"><img id="oiwr9gn754m6i8sdyo" src="https://media.gettyimages.com/id/467207946/photo/apply-now.jpg?b=1&s=2048x2048&w=0&k=20&c=YmfKzo8npYzKX2zTNATqB62KzQEpspq76hWxd9wYLW8=" alt="Apply Now" title="Apply Now" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

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