Fixed or variable, what’ll it be?
With today's historically low mortgage rates, choosing a fixed rate may seem like a no-brainer. However, different financial situations call for different options.
Mortgage rates have been at rock-bottom for a long time, and any Mortgage Broker will tell you they won't last forever. So when you're looking to sign the dotted line on your first mortgage, renew for another term, or refinance your existing mortgage, you will need to choose between fixed or variable rates. This article from Moneysense gives a few examples of questions you should be asking yourself when making this important decision.
Carefully assessing your income, your debt, your savings and your future plans are all things you should do before choosing a mortgage rate. If your budget has some room for fluctuations, and you can easily deal with the uncertainty of your mortgage rate fluctuating, a variable rate may work for you. For those whose budgets are carefully calculated, it is a good idea to consider what kind of effect an increase in the prime rate would have on them.