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Mortgage Interest Rates in Canada are extremely important when it comes to getting a mortgage in this country. If you intend on living in Canada for a long period of time you will want to make sure that you get the best mortgage rates possible. Mortgage rates in Canada have been going down for some time now and they are still going down. This is good news for Canadian mortgage borrowers since right now interest rates are low and that is very good for them. In order to receive the best mortgage rates in Canada, then you need to know what they are and how they work.

First we need to discuss interest rates and lock-ins. Most mortgage lenders in Canada offer a fixed rate with a lock-in date at a particular level. In the end of the lock-in period the mortgage lender will raise the interest rate to the cheapest prices available based on the updated lock-in rate. This sort of locking-in is called a"bund."

There are two types of locking-in you should be aware of if you are thinking about buying your home in Canada in the near future. The first sort of locking-in occurs when the mortgage lender in Canada provides you a variable rate mortgage. As you know variable rates may fluctuate up and down thus this isn't always such a good thing if you plan on living in Canada for an extended time period. A variable rate mortgage has a much greater interest rate than a fixed rate mortgage and if you need your cash now it can be hard to justify paying additional attention on your mortgage than you need to.

One final reason why the mortgage rates in Canada can be very advantageous to you is because the central bank of Canada can intervene in the marketplace and increase rates when necessary in an attempt to control inflation. The central bank of Canada can increase interest rates to fight inflation and should the inflation goes through the roof the effects on your pocket book aren't pretty. If you would like to purchase real estate in Canada then it is very important to understand the interest rates in Canada work so that you are better able to know whether you should buy the property now or wait until interest rates go back down. Knowing why the interest rates go is the first step in being prepared to purchase a property property in Canada.


For more details please visit current mortgage rates.