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Fix verses variable probably the number one financial question that we
get asked specially in the low interest rate environment we find
ourselves in Canada right now
so you're mortgage is coming up for renewal
and you have a choice
do you lock at almost a historical low fixed rate for a long period of time
five years seven years ten years
or do instead you take a slightly lower variable rate and then rough it out to
see if interest rates ultimately do go up
think the question and the answer to that particular question really depend on
your own specific financial situation and the most important consideration is
will you be able to sleep at night? If you're worried
and your concern that interest rates could rise and that could affect
ultimately your ability to pay that mortgage i would lock in at a fixed rate
which is very very low and very very reasonable given historically where interest rates have been
if on the other hand you're someone that does have excess cash flow in their
budget
and can afford
an increase in payments later on should interest rates rise
then you will ultimately save money by going with the lower variable rate right
now for the best possible advice for you
make sure that you speak with financial advisor to look at your own personal
situation