Fixed Vs. Variable The Never Ending Debate

Now more than ever Canadians are asking “What should I do with my variable rate mortgage?”  Bank of Canada Prime Rate has seen an upward momentum and economists are predicting that this could continue, but how often and how much remains the question.  Previously, year over year, a variable rate mortgage has outstood a fixed mortgage in saving you money.  Currently it still is, but choosing a variable is not for the faint at heart.  You will want to make sure you are comfortable with taking the risk.  So far the risk has been minimal, but nobody knows what the future may hold.

As for a fixed rate mortgage, sometimes it is the only option available.  Sometimes the lender who approves your mortgage does not have a variable product.  A fixed mortgage has a lower risk, but then of course the rate is highter.  Still, quite a few people prefer this more secure option even though it is proven to be more expensive.

So the decision is up to you.  Our recommendation is to ask yourself 'Is having a variable rate mortgage a concern for me?'  If that is the case then it's quite possible that a variable rate mortgage is not right for you.

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