Are you getting a new mortgage or renewal? Some mortgage brokers are saying it may be time to lock into a fixed-rate mortgage. The Bank of Canada has increased interest rates four times since 2017. There is a rumour that there could be one more increase before the end of this year. This will affect variable-rate mortgage holders, whose payments are based on changing prime rates. So what is better fixed or variable rate? In my opinion, it comes down to the perspective of the person applying for the mortgage and it also depends on their outlook. A five-year mortgage is a commitment and some people can’t make it through a five-year term. The cost of breaking a five-year fixed mortgage can cost a lot in penalties. So, a variable rate may be better for some. What are your thoughts? Leave them down below. If you are looking for a recommendation for a mortgage professional in your area, ask me, I have lots in my network. Call Mike Bolger today at (519) 616-2656 for more information.
