If you’re on a standard variable rate, it’s likely to be cheaper to remortgage onto a fixed-rate mortgage in most circumstances, as you won’t have any ERCs to pay. Either way, a fixed-rate mortgage will offer you more certainty vs a variable rate mortgage, as the interest rate can...
While initial interest rates on an ARM may be low, once they begin to adjust, the rates will typically be higher than those on a fixed-rate loan. During thesubprime mortgagecrisis, many borrowers found that their monthly mortgage payments had become unmanageable once their rates started to adju...
adjustable-rate loans usually have a lower overall cost of borrowing, though the longer the loan term, the more risk there is. For example, a five-year variable-rate home improvement loan is a safer bet than a 30-year variable-rate mortgage. ...
The Bank of Canada interest rate increases have been top of mind for Canadians across the country. The real estate market started with a boom in 2022; Four tips to help you decide whether a fixed or variable-rate mortgage is best for you.
between fixed rate vs variable rate mortgage loans. As mentioned above, it really depends on the economy, your life goals, and your current financial circumstances. Here’s a quick summary and breakdown of the main pros and cons to help you decide which route to go with your mortgage lender...
Different loan structures could impact your costs. Delineate between fixed-rate vs. variable-rate mortgages to navigate your mortgage journey more effectively.
How Fixed Interest Rates Work A fixed interest rate is attractive to borrowers who don’t want theirinterest ratesfluctuating over the term of their loans, potentially increasing their interest expenses and, by extension, theirmortgage payments. This type of rate avoids the risk that comes with a...
Current Variable vs. Fixed Mortgage Rates Fixed Payments for the Mortgage Term Your monthly payment remains fixed even if interest rates rise, as long as the amount is sufficient to cover the interest cost. Payment Options Renewing Your Variable Rate Mortgage ...
Variable Mortgage Offers Flexibility That Fixed Interest Rate Cannot
rate mortgage into a fixed rate. This is a fantastic feature of these mortgages because it allows you to choose and pick when to lock in to that long term rate. If we’re worried about rising rates, it’s possible to lock in. Also, if the rate offering today isn’t great and you ...