Can mortgage rate change, after some years, I live in Canada.?

Question

I have a mortgage I got from a broker and lender, my deal closes on Apr 13 for my house purchase. How do I know if my rate of 5.8% will change in a couple years like those "teaser rates" that I had read about that happen in USA. Are there different laws here that protect us? Ontario Canada, Thanks

Answer 1

I am a mortgage broker from Edmonton, Alberta. If you have signed the commitment and have a possesion date depending on what mortgage you have the rates may change.
for example:

5yr closed rate 5.09% ( Your rate is locked in for 5yrs)

5yr variable prime - 0.9% (Floating rate dependant on the prime rate - 0.9% locked in for 5yrs usually fixed payments)
Amount of money designated to principle and interest varies depending on if the rates go up or down.


5yr adjustable rate - 0.9% ( Floating rate dependant on the prime rate - 0.9% locked in for 5yrs usually floating payments)
Mortgage payments fluctuate depending on if the rates go up or down. Guaranteed payment of princilpe over term, unpredictable mortgage payments.

Sub prime market completely different in Canada to USA. It's more regulated and no as aggressive.

If you have any questions, please feel free to contact me at my website Save $1000s with my FREE Canadian Mortgage Newsletter
http://www.albertamortgageguy.com/

Answer 2

It all depends on the type of mortgage you have and the term. If you have a short term yes the interest rate you pay can change. Look at the terms, like is it 5 years or 10 years or just 1 year and are you locked in with a fixed rate or do you have a variable rate. the broker is the one that should be answering all your questions before you sign. Find out what your signing.

Answer 3

The broker is supposed to read you the terms. review it with them most mortgages are for a set term

Answer 4

Is this a trick question?

Why not ask the broker, he works for you?

Answer 5

if it is a fixed loan it will not change

if it is an adjustable loan it will