Which mortgage rate is right for me?

You’re mortgage shopping and looking for the lowest rate possible – good idea? The answer is… yes and no.

Although you should be looking for a low rate on your mortgage, you also need to consider the terms that come with it. Your mortgage rate will be reflective of whether you’re in a variable or fixed-rate term.

What’s important is that you understand the difference before you choose. At the end of the day, the decision is yours – but we’re here to provide advice that best suits you and your financial situation!

Variable rate

  • If interest rates go up, there is no heads-up. Therefore, your mortgage payments may increase significantly at the drop of a hat. On the flip side, if interest rates go down, your mortgage payments will also go down.
  • Variable mortgage rates can be unpredictable for budgeting and this may present itself as a problem in the future for you.

Fixed rate

  • There’s consistency and reliability in a fixed rate because you know the exact amount you’ll be putting down on your mortgage for each payment over the number of years you decide on.
  • If there’s a significant difference between the variable and fixed rate, you’ll need to evaluate if it’s worth it to pay more for the protection of a fixed rate – if the fixed rate is higher than the variable rate at the time of signing.

We’re here to help you make these tough decisions – you don’t have to do it alone! Visit an advice centre near you or call our Contact Centre at 1.866.863.6237.