Can You Get Out of a 5-Year Fixed Mortgage?
Are you preparing to buy a home and considering a 5-year fixed rate mortgage? As someone who prefers the consistency and low risk of a fixed mortgage over a variable model, this seems to be the way to go. However, you may have heard that a number of new buyers are choosing short term (1- or 3-year fixed) options as a means to avoid paying near record-high fixed rates of 2023. The latter doesn’t sound ideal for your prefereces, but it has made you curious about what you should do if you get a 5-year fixed rate mortgage today, only to find that the cost of borrowing drops significantly in the next year or two. Can you get out of a 5-year fixed mortgage in BC? Below is a straightforward breakdown of what you need to know and do.