In Kamloops, a less-known mortgage option is the 1-year fixed rate mortgage, with only about 5% of mortgage clients choosing this type. Despite its lower popularity, this mortgage type offers several advantages.

Understanding the 1-Year Fixed Rate Mortgage

This mortgage is where the interest rate remains constant for one year. After this period, you have the flexibility to renegotiate the loan. This arrangement combines the stability of a fixed rate with the adaptability of an adjustable rate mortgage, without the worry of a sudden hike in monthly payments. At the year’s end, you can either continue with another one-year term at the same rate or opt for a longer duration, like five years, to secure the current rate.

Ideal Candidates for the 1-Year Fixed Rate Mortgage

The 1-year fixed rate mortgage is particularly suitable for individuals who may not plan to stay in their home for an extended period. This mortgage type ensures your monthly payment remains unchanged for the entire year. Once the year is up, you have the option to renew the mortgage and select a new rate for the following year. It’s an excellent choice for those who might relocate soon, as it allows for breaking the mortgage without penalties or the opportunity to switch to a more favorable home loan. Additionally, it benefits those whose credit scores are improving, as they can seek out more advantageous interest rates after the one-year term. For further details and to explore loan options, consulting with a Kamloops mortgage broker is recommended.

Talk to a Kamloops mortgage broker to find a lender that offers this mortgage product.