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AKAL Mortgages HAS EXPERIENCE WORKING WITH ALL LOAN PRODUCTS!!!

What Is A Fixed Rate Mortgage?

A fixed rate mortgage is a mortgage that has an interest rate that will remain determined for the entire term of the loan. In a world of rising interest rates and uncertainties, a fixed rate mortgage is the safe way to go.

• High Ratio Fixed Rate Mortgages to 100% at best rates
• Poor Credit First Mortgages to 95% LTV
• Fixed Rate Second Mortgages to 100% LTV
• Fixed rate second mortgages starting at 11.99%

The greatest difference between VRMs and fixed rate mortgages is how the rates are set. VRM rates are set based on the Bank of Canada rate. The chartered banks add a slight premium to the Bank Rate to establish the Prime Rate. This is what most lenders use to price their various VRM products.

In our system, the Bank of Canada uses its bank rate to control inflation in the economy. When little or no inflation is present, as is the case right now, this rate tends to be set at very low levels and is relatively stable. The fixed rates, on the other hand, are set based on the yield in the bond market. The bond yields are very volatile and tend to fluctuate, often due to political and economic conditions. This volatility makes it impossible to gauge what fixed rates will do, even in the short-term.