In Canada Mortgage rates are quite low right now. Thinking about of purchasing a first home you should have a solid understanding of which of the mortgage options available to you. Think about should i go to a fixed rate or a variable mortgage? though there is no possible answer to this question, you might consider to select the option most suited to your needs.
Fixed rate mortgages offer a security of a locked-in interest rate of the term you choose, typically one to five years. but consider that on the fixed rate when you come out to renewal, your choices will determine by mortgage rates available at that time.
Variable rate mortgages may have lower rate than fixed rate mortgages, but the interest rate linked to the Prime Rate and fluctuates with it. That could mean decreases or increases in the rate you pay over the term you select and a corresponding impact on both total interest costs and the amount of your mortgage payment. According to the one Canadian study interest rate data from 1950 to 2007 that choosing a variable rate mortgage over a fixed rate mortgage would have saved consumers $20.000, in interest payments over 15 years (based on a $100.000 mortgage).
Fixed rate mortgages offer a security of a locked-in interest rate of the term you choose, typically one to five years. but consider that on the fixed rate when you come out to renewal, your choices will determine by mortgage rates available at that time.
Variable rate mortgages may have lower rate than fixed rate mortgages, but the interest rate linked to the Prime Rate and fluctuates with it. That could mean decreases or increases in the rate you pay over the term you select and a corresponding impact on both total interest costs and the amount of your mortgage payment. According to the one Canadian study interest rate data from 1950 to 2007 that choosing a variable rate mortgage over a fixed rate mortgage would have saved consumers $20.000, in interest payments over 15 years (based on a $100.000 mortgage).
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