The 10 year fixed product does not seem to be a popular one amount mortgagors. Over the years, 10 year fixed term rates have went up and down and sometimes can pay off and sometimes it does not. You have to be careful if you are choosing to go with a 10 year fixed. For example, 10 year fixed 12 month ago was at a very low 3.79%. Compared to today’s 3.39% 5 year, you could say it would pay off to have that rate for 10 years. This would pay off if rates were to significantly increase in the coming years, which is always a possibility. According to economists, this is exactly what is going to be happening with fixed rates. Variable rates will increase as well, but not as much as fixed are predicted to rise.
When it comes down to it, the chances of rates rising astronomically is unlikely however, not impossible. If you like to play it safe when it comes to rates and mortgages, then a 10 year fixed product may be the one for you. If you are a risk taker and like to take chances, a smaller term product with better rates should be your goal. This combined with an annual check in with your mortgage adviser is the perfect combination for a faster payoff in home ownership!
Contact Robert Clancy today to find out which is the best product for you!