Current Promotion 1.4 % and will beat any offered rate.
Rate of interest is very complex matter to understand for some people who might not be aware of how financial markets work. It is very important to understand the role of interest rate in the process of Canadian mortgage. Canadian mortgage interest rates are compounded. Compounded interest rates means the interest rates will be charging interest on interest. The frequency of this compounding interest rates may vary in different types of industry loans. In mortgage interest rates are compounded bi- annually means 2 times a year or once every 6 months. The compound interest rates in mortgage industry works at the end of the period.
It is very much important to understand that how our installments work in Canada. If you are paying your mortgage on the 1st of March for example the payment will cover for the month of February if the interest rates are compounded at the end of the period. This is most typical scenario for mortgage interest rates every installment we pay is for the last month’s coverage.
But in case of other loans where compounded interest rates are calculated for example Auto loans.
The installments we pay on every 1st of March for our car will cover the cost of car for that month.