I am Mark, from Canada. I would like to know about hybrid mortgages in Canada.
I was planning to take up a mortgage to purchase my dream home. When I inquired about the different mortgages, I heard that taking a hybrid mortgage would be a good option. I read online that it is referred to as a 50/50 mortgage because it allows you to lock your loan at a higher fixed rate and the other part of the loan is at a lower variable rate. Basically, what happens is that your loan splits into two. It is said that there are numerous benefits of getting this type of a mortgage.
But I am worried whether this type of a mortgage would be right for my financial condition. I do not have any other pending loans at the moment and I have a decent credit score. Are there any risk factors for this type of a mortgage compared to the other mortgages? What do you all think?
Please help me. I am looking forward to some expert suggestions on this.