That is the age old question that is asked countless times….
There is no straight answer, as the ideal is different for everyone. The best we can do is educate you about the advantages of both types of rates and you can make an educated decision.

Or, you can talk to us about our 50/50 Wise Mortgage product, which is best of both worlds. Call or email us today for more information.

Advantages of a fixed rate mortgage:

A fixed rate mortgage offers the stability of a fixed rate for your full term. If you take a 5-year fixed term at 4.09%, you get 4.09% for the full 5-years. You have the security of a fixed payment and you can sleep easy knowing neither your rate or payments are not going to change.

Advantages of a variable rate mortgage:

A variable rate mortgage has shown interest savings versus taking a fixed rate. What comes along with those savings is a bit of risk. Your interest rate and payment is determined by prime rate, prime rate is dictated by the Bank of Canada (BoC). BoC reviews prime rate every 6 weeks to determine if an adjustment is needed. If prime rate changes, you will see your payment and interest rate change as well. Variable rates are in the “prime plus” these days. Some experts are saying we may see the days of “prime minus” again but it could be a few years and prime will likely be higher. If you are not risk adverse and are comfortable with fluctuating payments, a variable rate may be for you. Talk to us today to tailor your custom mortgage solution.

40 years of combined mortgage experience working for you!

Click on the link below to view a Historical rate chart Fixed vs Variable
Historical Rate sheets – Sept 2009

* Rates subject to change without notice OAC E&OE

Related posts:

1. Is the “Best of Both Worlds” for you? There are many factors to take into account when deciding whether to go for a fixed rate term or a variable rate term mortgage. Fixed rate terms have higher rates and are more expensive, but payments are fixed for the term of the mortgage, so you know exactly what amount is to be paid on [...]...

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