Fixed Rate Mortgage vs. Variable Rate Mortgage
Which mortgage is the better way to go? Most people go for the fixed rate mortgage because it is the safe choice; it provides stability and gives the feeling of comfort knowing exactly what you will be paying on your mortgage for the fixed term.
Even though it may feel like you are taking a gamble going with a variable rate mortgage, because it can change at any time, it is actually a good choice because it allows you to pay down more principle with less interest and lower monthly payments. This option provides you with advantages like becoming mortgage free faster, and saving thousands a year on interest. It also gives you the option to lock in the rate at any time.
Historically speaking if you look at the two fixed and variable rate mortgages over the last years, variable rate has actually stayed lower, thus saving more money for those with variable rate mortgage.
Source: Bank of Canada
The current market offers really great rates and now is a great time to take advantage of saving that money on your mortgage. According to the Bank of Canada it seems that the rates are not going to change anytime soon.
For more information on variable or fixed mortgages please contact Robert Clancy today!
Robert Clancy, AMP,
SAFEBRIDGE Financial Group
Tel: 416 899-1467