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  • Fixed Rate

  • Fixed Rate vs Variable Rate

     The decision of whether to opt for a fixed or variable rate is not always easy and it is largely dependent on your risk tolerance as well as your ability to withstand increases in mortgage payments.

    Fixed rate mortgages are better for clients who want stability in their monthly 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.

    Variables rate mortgages allows our clients to take advantage of lower rates - the interest rate is calculated on an ongoing basis at a lenders’ prime rate minus or plus a set percentage. For example, if the current 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.

    Call us today to have a candid discussion to ensure you have a full understanding of the risks and rewards of each type of mortgage.