Brandon Nishi | Mortgage Broker
Fixed vs Variable Interest Rates
Variable Interest Rate
Variable rates go up and down depending on the prime rate. The prime rate is decided by the Bank of Canada. Historically, people chose variable rates because they're cheaper than fixed interest rates. Yet, the prime rate can easily fluctuate up or down, meaning that your monthly payments can be affected overnight.
Fixed Interest Rate
The safe choice. The interest rate that is offered will be your interest rate till the end of the term. You'll have the same monthly payments whether your current mortgage rate goes up or down. A fixed interest rate is becoming more demanding in 2019 as many are unsure of the situation, and would like peace of mind that their rate will not be affected till the end of their term