With fixed rates, your interest rate and payments are locked in for the term you commit to. The stability that a fixed rate gives you can be appealing because it protects you if rates rise. The speed you pay down your both your principal amount and the amount of interest is predetermined before you sign anything. Variable mortgage rates fluctuate with the bank’s prime rate. As with a fixed rate, your monthly payment will likely stay the same no matter what happens. If the prime rate drops, you will be paying down more of the principal. If the prime rate rises, more of your payment will be used to pay higher interest.
How do I choose?
If this is your first mortgage, or if you’re unsure about the current market, don’t worry – Conexia is here to help. You’ll receive personal assistance from a qualified mortgage broker who has all of the knowledge you need to make an informed decision. Your broker will contact many different Canadian lenders to find and qualify you for the best possible mortgage.
Apply online or contact Conexia Mortgage to discuss your mortgage financing options.
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