Four Year Vs Five Year Fixed Mortgage
“Are Borrowers Starting To Move To Four Year Fixed Rate Mortgages And Away From Five Year Fixed Rates?”
This was a question that was recently asked to me by the The Mortgage Broker News.
Or as they put it, is four year fixed the new five year fixed?
Here’s a link to the article which includes my take on the subject… http://www.mortgagebrokernews.ca/news/breaking-news/is-the-four-year-fixed-the-new-five-year-fixed/107206
Lately, mortgage lenders have been pricing four year terms very aggressively and are seeing considerable uptake in the market place for the 4 year fixed term.
But to say this is becoming a permanent or long term trend would be a stretch at this point.
Basically, mortgage hunters will always react to the best pricing options on the market. And right now with four fixed mortgage terms being priced as close as they are to variable rates and considerably lower than 5 year fixed rates, it makes sense that this type of rate opportunity is going to be taken seriously.
However, if mortgage term pricing changes further, so will the actions of the consumers … just like you would see in any other market.
For now, 4 year fixed terms are very attractive and will continue to gain buyers.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel