Variable Rate vs. Fixed Rate

Should you choose a variable vs. fixed rate mortgage?⁠ ⁠

That is the biggest question I get asked. ⁠Although a mortgage agent can't tell you what you should do, they can advise you on the pros and cons of each. With that information, it's up to you to decide what would make you most comfortable. ⁠ ⁠

In the past, the low rate of variable has been quite appealing. It's often lower than fixed and you typically get the option to lock in at any time. But it's been an unprecedented few years and things are changing rapidly.

Things you need to consider:⁠ ⁠

👉Can your budget withstand the change in payment? We don't know when rates will stop rising. If you are in a variable rate term, your payments could double or triple. Can you afford that?⁠ ⁠

👉If you were to lock in now, would that put your mind at ease? If you choose to lock in, you'll lock in at today's rate for the remainder of your term. You won't be able to go back to variable until your term matures.⁠ ⁠

Historically, variable has been the better option. But are things changing? What do you think?⁠