Variable vs fixed: Is it time to lock in your mortgage?
The search for the right mortgage can make a person feel a bit like Goldilocks: On the hunt for something that is not too short, not too long, but just right.
After much recent speculation about the possibility of increasing mortgage rates, many Canadians are turning to the security of a fixed mortgage. Mortgage rates are still at historic lows, and it is difficult to predict how long this trend will last. Recent headlines have suggested a rate increase could come about as soon as the end of the year, making the option to hold a steady rate for ten years even more attractive.
This Moneyville article examines the many benefits of choosing a fixed rate mortgage. Even homeowners who are planning on selling in a few years may want to consider going fixed. Choosing a mortgage that is portable to another property gives the ability to take advantage of the current low rates while still having the freedom to upsize, downsize or simply relocate. Many of the longer term mortgages are assumable as well, which could prove to be a selling feature in a few years if rates have increased. Another benefit of a longer term is flexibile payment options. For those looking to pay off their mortgage faster, it is important to have the ability to make lump sum payments or increase regular payment frequency. For more information, speak to a qualified Mortgage Broker.
To read the full article from Moneyville, click here.