Hybrid mortgages catching on with homebuyers
It's the question Canadian homeowners continue to obsess over: Should I stay fixed or go variable?
Historically, borrowers have saved money by choosing a variable mortgage. But a pending upswing in interest rates, which can only move higher as the economic recovery takes hold, has some consumers looking to lock in at still low fixed rates.
Then why not do both by taking out a hybrid mortgage?
Hybrids – sometimes known as 50/50 mortgages – include a mix of fixed-rate and variable-rate elements within a single mortgage. You get the best of both worlds, argue supporters: the security of fixed repayments with the flexibility of a variable rate.
A good way to go? Well, some people seem to think so.
According to recent RBC research, 40% of homebuyers planning to buy in the next two years intend to take out such a mortgage. That’s a big jump compared to last year when just 32% were considering a hybrid as an option.
"As consumers begin to learn about the benefits of mortgage diversification, we're seeing more homebuyers gain a better comfort level with adding floating rate mortgage options," says Marcia Moffat, head of Home Equity Financing at RBC.
The academic research supports hybrids as well, Canadian Mortgage Trends reports: Quoting mortgage expert Dr. Moshe Milevsky, editor Rob McLister points out that: “Nobody can truly predict how rates will move over a five-year period. It’s just that simple.”
Milevsky therefore believes hybrids are a good form of mortgage risk management. “People should strongly consider mortgages that are part fixed and part floating,” he maintains, arguing that interest rate diversification benefits borrowers just like it benefits investors who buy portfolios of stocks.
Is there a hybrid mortgage in your future? Do you have another plan to hedge your bets as interest rates rise?
By Gordon Powers, MSN Money
Posted by: John Cash | May 20, 2021 5:05:39 AM
I found a mortgage broker through this company. They had me all set up in no time. They advised me to get this new type of mortgage to Canada. Wow was I impressed. When I called Home Assist Canada. I had three mortgage broker call me within the hour. Take a look at "home Assist Canada" (www.homeassistcanada.ca) now there is a business worth looking into. Its taking off in leaps and bounds and its a good honest business looking out for the homeowner!
Posted by: Martin McKay | May 21, 2021 1:11:43 PM
I find it funny how low people will go to plug their website. homeassistcanada is just an information grab, they sell your information to various service companies and get a commission. Its a dying business model.
Posted by: Martin McKay | May 21, 2021 1:19:54 PM
And hey, i'm not saying 50/50 mortgages arent a good idea im just saying go direct to a mortgage provider/brokerage not a company that has a vested interest.
Posted by: savemoney | May 21, 2021 7:05:10 PM
stay varible, never go wrong, u will always be paying less than fixed.
Posted by: Domingo Nychka | May 24, 2021 11:51:20 AM
In Canada Insurers keep a secret history of your home and claims.
The report is called "HITS" the code name for Habititational Insurance Tracking System. You can request a copy and see what your Insurer paid out on your claim and what they paid their adjuster/ or lawyer. Request a copy for free by sending a fax to VIA FACSIMILE 514-415-3989 or mail your request to:
CGI Autoplus and HITS
1350 Rene Levesque, 7th Floor
Montreal, Quebec
H3G 1T4
The following information is
required for the request to be
processed:
• Consumer’s complete name
• Consumer’s complete mailing
address
• Consumer’s daytime telephone
number
• Consumer’s driver’s licence
(AutoPlus only)
• Statement requesting a copy of
the consumer’s AutoPlus or HITS
report
• Consumer’s signature.
Posted by: High Interest Rate Savings Account | Oct 16, 2021 7:57:28 PM
msn always keep on top..... it's a great.....
----jacob----
High Interest Rate Savings Account