One of the most popular types of mortgages is the fixed-rate mortgage. Fixed rate refers to the fact that the interest rate remains the same over the term of the mortgage. This is in contrast to other types of mortgages like variable rate mortgage in which the interest rate may change. If you have a set budget and want to have a predictable payment from month to month, than a fixed-rate mortgage might work well for you. CIBC offers 3 types of fixed-rate mortgages: the fixed-rate closed mortgage, Convertible mortgages and the fixed-rate open mortgage.
How fixed rate mortgages are impacted by Canada Mortgage Bonds
Rates for fixed mortgages tend to be strongly linked to the bond market. In fact, 9 times out of ten, when bond rates go up, fixed rate mortgages do the same. Bonds are debts with a promise to repay the principal of debt, with interest. Long term mortgage rates tend to be based on the yield, the annual rate of return, of those bonds.
For additional information about fixed-rate mortgage choices or to complete an application by phone, contact a CIBC Mortgage Representative at 1-866-525-8622Opens your phone app..