Choosing the right rate for you

The choice between a fixed or variable rate should depend on your risk tolerance level as well as your ability to withstand increases in mortgage payments. A fixed rate mortgage offers more predictability over the term of the mortgage.

ASPECTS OF FIXED RATE MORTGAGES

• Suits more conservative individuals who prefer or require stable fixed monthly payments
• Withstands interest rate fluctuations over the mortgage term
• Usually a higher interest rate
• Good for those that do not plan to sell or refinance in the short term

ASPECTS OF VARIABLE RATE MORTGAGES

• Suits less conservative individuals who can withstand fluctuations in interest rates over the mortgage term
• Usually are a lower interest rate
• Calculated based on the lenders' prime rate minus or plus a set percentage
• Good for those who plan to sell or refinance in the short term
• Good for investors who wish to take advantage of low interest rates