There are several variables to consider when looking for a mortgage. One of them is selecting a mortgage term that’s right for you. The mortgage term is the length of time that the mortgage interest rate is fixed. Standard mortgage terms range from 1 -10 years. The choice is yours and depends on your particular financial situation, and whether you’re willing to take a bit of a risk, or you prefer security over potential savings.

In general the longer the term, the higher the rate.

Is a shorter mortgage term right for you?

• Do you plan to move in the next year or two?
• Do you estimate that rates will go up and want to protect yourself against a larger rate increase while taking advantage of the much lower interest rates on 1-3 year terms?

Is a longer mortgage term right for you?

• Do you feel that rates are pretty good now and want to hold on to them as long as possible?
• Do you prefer the security of knowing your payments and interest rate will be the same for a longer period of time?

SMP’s mortgage coordinators can provide you with the details you need to make a choice that works for you. Apply online at www.smpapplication.com.

Finder Financial Services Ltd. has entered into a strategic partnership with Home Trust Company, one of Canada’s leading trust companies, to offer numerous discounted mortgage products through the Sutton Member Program (SMP).

“We are very excited about these new products being offered through Finder Financial Services Ltd. as it ensures that more SMP members will qualify to receive the best mortgage rates in Canada.” says Rene Girard, President of Finder Financial Services Ltd.

With the addition of this partnership, SMP solidifies its third of three very strong lender relationships ensuring that SMP, through its distribution channels, continues to offer the best rate mortgages in the industry.

Visit www.suttonmember.com for current rates.

Finder Financial Services Ltd. announced today that it has expanded the Sutton Member Program to offer the best 1-5 year mortgage rates in Canada.

The Sutton Member Program now provides exclusive access to the best discounted rates on 1,2,3,4, and 5-year fixed term mortgages. The SMP also continues to offer the best variable 5-year mortgage rate in Canada at prime (2.25%).

Best 1-5 year rates in Canada.

This is not an easy decision to make, but one you’ll need to carefully reflect on as a homeowner. The right choice lies within your specific situation: the stability of your job, the amount of equity in your home, your financial goals and your level of tolerance for risk among other considerations.

Fixed rate mortgages offer stability with a rate that is locked in for the term of the mortgage — only if rates fall, you won’t be able to take advantage of the lower rates without paying a penalty for refinancing.

Variable rate mortgages offer you savings over fixed rate mortgages with the ability to have more of your payment applied to your interest if rates go down, thus paying the mortgage off sooner. Also, you have the option to convert to a fixed rate mortgage at any time. However, there is always a risk that rates may increase. So not a good option if you are prone to worrying.

But, if you are tolerant of risk, and willing to take a bit of chance then a variable rate may be the right choice for you. Some convincing evidence lies in the report “Mortgage Financing 2007: What Now?” By: Moshe A. Milevsky & Brandon Walker, Schulich School of Business and the IFID Centre.

Key points:

Based on data collected from 1950-2006

1. Canadians who can accurately predict the next move of the Bank of Canada – and decide to “lock in” their mortgage when the short rate is about to increase – are worse off on average, compared to those who float over the entire interest rate cycle.
2. Canadians were better off almost 90% of the time with a variable rate mortgage instead of the traditional 5-year rate mortgage.
3. Canadians still pay a premium for the security of a 5 year fixed rate mortgage

View the full report here

SMP’s mortgage coordinators can provide you with the information you need to make the decision that’s right for you.  Apply for a mortgage today.