People tend to be stuck on the choice between variable and fixed rates when it comes to their mortgages. A fixed rate provides you with certainty that your payments will remain the same for the duration of the mortgage. While a variable rate may seem risky, with the fluctuating rates, but also attractive due to it being offered as a lower rate than the fixed.

Your income, lifestyle and risk tolerance will weigh heavily on your decision and will inevitably determine which mortgage product suits your circumstances.

Variable Rates:

  • VRMs are typically lower than a fixed rate mortgage.
  • Higher risk, given the interest rate can fluctuate at anytime, increasing your monthly payments (sometimes dramatically).
  • Currently with the prime rate on the rise, this would not be the ideal time to take the risk with a variable rate.
  • When deciding if a variable rate is for you, take into consideration the payments of up to a 2% increase, and if you would be comfortable making those payments.

Fixed Rates:

  • Set for the duration of the mortgage term. The mortgage interest rate and payments are fixed.
  • A 5-year fixed rate is the most popular rate that people lock into.
  • This rate allows you to budget for up to 5 years in the future. You can calculate if the payments will be affordable for you now and in the future.



If you are looking to lock in, given the forecast of rate increases in the near future; contact me today at 519-539-6153.


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