With the recent shift in shorter term mortgage rates a second look at the 10 year fixed term as an inflation hedge mortgage strategy may be a timely.
For those home owners with some equity in their home who may want to consolidate debt or refinance to take out equity and buy a second home or investment property the longer term mortgage and inflation hedge mortgage strategy can provide peace of mind. For those with homeowners near the end of their mortgage, locking into the 10 year term and implementing an accelerated pay down program could be an effective move.
Inflation Hedge Mortgage Strategy
Some key benefits of a longer term rate and inflation hedge mortgage strategy include:
1. Offset inflationary pressures
2. Peace of mind with a fixed mortgage payment
3. Good money management for real estate portfolio
4. Reduce the impact of payment shock when rates move upwards
The video below provides a good review for your reference including some visual elements. It is 12 minutes in length.
http://vimeo.com/42155022
Note: I do not work with the company which produced this video and do not promote their services. I liked the overall content as it provided some good information if you are concerned about rates moving up and a 10 year term as an inflation hedge mortgage strategy.
If you would like a no-obligation review of your mortgage for your own home or for your investment portfolio, give me a call at 604 813 8402 or email pauline@mybcmortgage.ca