fixed vs variable
The age old question.... should we go fixed or variable?
There is no right or wrong answer but you can use these guidelines to help you choose what is best for you.
Typically a variable mortgage will pay off faster than a fixed. However, for one of the few times economists are saying it won't matter much for the upcoming five year term as they will be very comparable.
Based on todays market, this is the advice I give:
If you have a fair bit of flexability in your budget allowing for payments to increase and
-You won't lie in bed at night worrying if the prime rate is going up and
-you have given a good look as to where the economy is going. for example..your chances of being unemployed or income remaining steady, the U.S & Canadian economies, as well as, other events happening around the world, and
-you put more than 5% down and
- you're are getting a variable rate prime -.50 or greater..... variable is a good option.
Having said that, these are some of the lowest fixed rates we have ever seen. So if the variable is not a good option for you, then there is nothing wrong with choosing fixed. It gives you stability, peace of mind and set payments.
Of course this is my opinion and every situation is different. Give me a call, so you can make the best choice for you.
There is no right or wrong answer but you can use these guidelines to help you choose what is best for you.
Typically a variable mortgage will pay off faster than a fixed. However, for one of the few times economists are saying it won't matter much for the upcoming five year term as they will be very comparable.
Based on todays market, this is the advice I give:
If you have a fair bit of flexability in your budget allowing for payments to increase and
-You won't lie in bed at night worrying if the prime rate is going up and
-you have given a good look as to where the economy is going. for example..your chances of being unemployed or income remaining steady, the U.S & Canadian economies, as well as, other events happening around the world, and
-you put more than 5% down and
- you're are getting a variable rate prime -.50 or greater..... variable is a good option.
Having said that, these are some of the lowest fixed rates we have ever seen. So if the variable is not a good option for you, then there is nothing wrong with choosing fixed. It gives you stability, peace of mind and set payments.
Of course this is my opinion and every situation is different. Give me a call, so you can make the best choice for you.