11 Oct

Fixed Rate Mortgages Closing the Gap on Variable


Posted by: Tammy Poirier

With interest rates hovering near record lows, many Canadians may be considering the purchase of a homeor to refinance their existing mortgage. And in the current interest rate environment, now more than ever home buyers are grapping with the age-old question of whether to choose a faxed or variable rate mortgage.

Typically, borrowers have saved money by staying in a variable rate product, but ther are a number of points to consider.

– Long-term declining rate environment

– There’s limited further downside for variable rates

– Fixed rates were advantageous only during 2 recent periods; late 1970’s and late 80’s. In both cases ahead of a period of rising interest rates which is likely the case in 2012.

So, who’s the winner? It really depends on the individual and what your needs and long term goals are.

To read the full article, go to http://www.bmonesbittburns.com/economics/focus/recent/110909doc.pdf

If you would like to know how much you can qualify and whether a variable rate or fixed rate is right for you, contact me at tpoirier@dominionlending.ca or visit www.MyLendingCentre.ca