Everything you Need To Know About Variable VS Fixed Mortgages. When You Learn This you May Never…


Variable vs Fixed Mortgage Rates

First Time Home Buyers – How to decide between variable or fixed rate Mortgage?  Which way should I go? Variable vs Fixed Mortgage which is the right decision?  This is a very common question and you are not alone. First, let’s understand the difference between the two types of mortgages. A Variable Mortgage is where the interest rate charged and your monthly payment will change when there is any change to what is called the prime rate.  The prime rate can change up to 8 times per year and I’ll keep you fully up to date on when that happens and how it will affect you. A Fixed Mortgage is where neither your payment nor the interest rate will change at all during the term of your mortgage..”


Both fixed and variable mortgages have their own advantages and disadvantages:https://www.investopedia.com/ask/answers/07/fixed-variable.asp

The advantages of a variable mortgage are:

  • When rates go down you benefit from that immediately and see your payment drop as well as an increased amount of your payment goes to your mortgage principal. Paying less interest means the faster the mortgage is paid off!
  • Historically variable mortgages have been significantly lower in rate than fixed mortgages
  • Variable rates offer you the freedom to convert at any time to a fixed rate mortgage especially when you see rates rising at no cost – I’ll keep you informed of when we recommend you do this.

The advantages of fixed term mortgages are;

  • The fixed rate offers the security of locking in your rate over for many years, and
  • You may prefer the peace of mind of predictable mortgage payments that are guaranteed not to change during the term of your mortgage, and finally
  • You will know exactly how much principle and interest you are paying with each monthly payment: http://yourmortgagedoctor.com/new-mortgage-rules/



    • Happy to hear you are attempting to learn more! If there is anything I can clarify or help you better understand please feel free to contact me! Cheers and Stay Tuned for more content:)


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