Don Stoddart, AMP

Mortgage Broker
905.874.1680 / 705.727.5959

Your Key Mortgage Partner

Free Mortgage Evaluation

Thank-you for your Mortgage Evaluation Request.
Sorry, there was an error. Please try again later.

Please remove the words "Delete Me" below


Quick Links


Visa Cards

Latest News

Read More News...

Articles & Trends

Review articles on the topic(s) that are most important to you.

 

Why use a mortgage broker

First-time buyer

Consolidating debt

Investing & vacation property

Renovations

Money-saving strategies

Moving/Closing

General Industry

 

Fixed versus variable rate mortgage? 

The decision to choose a fixed or variable rate is not always an easy one. It should depend on your tolerance for risk as well as your ability to withstand increases in mortgage payments. You can sometimes expect a financial reward for going with the variable rate, although the precise magnitude will ebb and flow depending on the economic environment.

 

Fixed rate mortgages often appeal to clients who want stability in their payments, manage a tight monthly budget, or are generally more conservative. For example, young couples with large mortgages relative to their income might be better off opting for the peace of mind that a fixed-rate brings.

 

A variable rate mortgage often allows the borrower to take advantage of lower rates -- the interest rate is calculated on an ongoing basis at a lenders’ prime rate minus a set percentage. For example, if the prime mortgage rate is 5.5 percent, the holder of a prime minus 0.5 percent mortgage would pay a 5.00 percent variable interest rate.

 

As a consumer, the best option is to have a candid discussion with your mortgage professional to ensure you have a full understanding of the risks and rewards of each type of mortgage.