High Net Worth Insurance Working Model - SafeBridge Financial Group

How a Fixed Rate Mortgage Works

  • Once you have been approved for your mortgage, you will decide upon either a fixed or variable rate. Once you choose a fixed rate, you are locked into that agreed upon rate for the duration of your 5 year mortgage term. 
  • As an example, if you sign up for a 5 year fixed rate at 2.04% on a 25 year amortization on a $876,350.00 mortgage, your monthly payment will start at $3727.85 and will end at $3727.85 . The monthly mortgage payment on a fixed rate mortgage remains the same for the 5 year term. 
  • Fixed rates allow you to “set it and forget it” knowing that your monthly payments will not change whether the rates rise or fall. 
  • At SafeBridge we take pride in discussing all the pros and cons of a fixed rate mortgage with our clients to ensure they are comfortable with their decision and understand the financial implications of their particular choice.

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    Is a Fixed Rate Mortgage Right For You?

    Fixed rates offer stability, but it is important to understand the IRD penalty and the “cost” of breaking a fixed mortgage before the end of your 5 year mortgage term.  

    • Let’s take a look at the following example to see how the IRD penalty works. 
    • 5 Year Fixed at 3.79% 
    • Total term = 5 years X 12 months/year = 60 months 
    • Months elapsed= 20 
    • Remaining months = 40 (or 3.33 years) 
    • Lender posted mortgage rate 3 year term= 4.15%
    • Posted rate- Actual rate: 5.29%-3.79% = 1.50%
    • 3.79%- (4.15%-1.50%)/12= 0.095%
    • 40 months remaining on mortgage term 
    • $350K on mortgage principal amount 
    • 0.095% x 40 months x $350K = $13,300 IRD penalty 

    Want to learn more? Let our team help you calculate what your potential penalties might be. We’ve worked with thousands of clients and helped them navigate which mortgage term option is the best option for them. Every client is unique, so leave the guesswork up to our team of professionals!

    Fixed Interest Rate:

    A fixed interest rate will stay the same over the life of your mortgage.  You can have peace of mind knowing your mortgage interest rate will not change over time.

    Predictable Monthly Payments:

    Most people choose a fixed rate when their cash flow is consistent or  limited.  Given the stability over time of a fixed rate mortgage, it is a safe bet to ensure no stress when you review your monthly budget.

    Protection from Rising Rates:

    As the borrower, you are protected from the sudden and potentially significant increase in monthly mortgage payments if the interest rate rise.

    The Benefits of a Fixed Rate Mortgage

    According to Statistics Canada, over 74% of Canadians choose a fixed rate mortgage, but the choice is yours, here are 3 reasons you may consider a fixed interest rate. 

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    Benefits of a Fixed Rate Mortgage - SafeBridge Financial Group

    Why SafeBridge is the Safest Choice

    When you work with SafeBridge we don’t pressure you into  mortgage decisions but rather our approach is to  educate you on your options. We strive to  ensure you have the right facts in front of you to help make the best decision possible. Remember, a purchasing a new home or refinancing can be a daunting task, let us handle to details and provide you with options that will help you make wise decisions.

    Apply Online for a Mortgage With SafeBridge

    Are you Interested in getting a quote on a Fixed rate mortgage today? Click here to find out what your fixed rate might be and one of our SafeBridge Agents would be more than happy to help you.

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    Our Team - SafeBridge Financial Group

    Have Questions?
    We Have the Answers

    What is the IRD Penalty and how can I calculate this?

    The IRD penalty is the penalty you must pay the lender if you break your fixed rate mortgage. IRD stands for Interest Rate Differential which captures the difference in the interest payable on your existing mortgage versus that payable on a replacement mortgage.

    What percentage of FTHB choose a fixed rate over a variable rate.

    Statistically over 70% of people end up breaking their mortgage over the life of their 5 year term. Life happens and that’s why it is important to really consider what the next 5 years could potentially look like for you before you lock into a fixed rate mortgage. At SafeBridge, we try to walk each client through the “5 year plan” scenario to ensure that they are making the right interest rate division that fits their lifestyle and budget.

    Can I switch from a fixed rate mortgage to a variable mortgage within my 5 year term?

    No, once you sign up for a fixed rate mortgage you must keep the fixed rate. The only way to change your mortgage terms is to break your mortgage which would cause the IRD penalty to come into play.

    Double Quotes

    Over the last 20 years we’ve been successful in attracting over 60 various lenders that our clients can benefit from. SafeBridge has evolved over the years and has become a very successful company…. The education, that comes along with not just the mortgage agent side of things, but also on the insurance and the investments and the financial planning all comes together in one holistic approach.


    Double Quotes

    For several years Andre has worked in the Financial Planning and Mortgage Solutions field with Scotiabank. After experiencing success, and gaining a wide knowledge base in the banking world, he decided to leave the bank to join a Boutique Mortgage Brokerage, Safebridge Financial Group.  Andre made the change so that he could offer clients a wider variety of mortgage options and lenders.

    Andre Persaud,

    Mortgage Agent

    SafeBridge Brokers & Advisors

    Meet the Team

    At SafeBridge we believe in experiencing growth together. We want to ensure that each of our agents is successful and feels a part of the SafeBridge team. We offer customized training, lender previews, team events and even team trips to build the strong culture of inclusion and support that so many of our agents enjoy.

    We believe it is essential to hire and Partner with the right people. We are looking for the best and brightest in the Industry to join our Exclusive Group of Professionals. Our team consists of loyal top producing Agents that have demonstrated exceptional care for their clients and passion for the industry in which they serve. Our Mortgage Centered Financial Planning approach helps our team foster long lasting relationships, which brings a unique process to the mortgage business.

    SafeBridge Partners
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    Biggest Names in Mortgages

    With over 20+ years in the Mortgage Industry, SafeBridge has built a solid reputation in the industry and is well respected by all major lending partners. SafeBridge has partnerships with over 10 insurance providers in Canada and has access to hundreds of mortgage products.

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