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Fixed or variable? The debate continues.

Published by axiommortgage on May/15/2019

Categories: Recent News

We’re in an interesting mortgage phase right now. According to this article in the Globe, savvy homeowners are opting for five-year-fixed mortgages rather than variable.

Why the aversion to variable rates? Well, unlike last year at this time, five-year-fixed mortgages are either on par with—or close enough to—variable rates that many believe taking on the extra risk just isn’t worth it. After all, variable rate mortgages go up with every Bank of Canada rate increase—and the Bank has indicated for quite some time that it’s trying to get the overnight rate up to a more normal level.

That said, economic factors—both global and domestic—have forced the Bank to stand pat for the last few rate announcements, and it’s possible an economic slump is on the horizon which could even lead to a cut. As we’ve learned from previous rate cuts, however, the Bank’s decision to lower the overnight rate isn’t always reflected in the banks’ variable rates.

So which way should you go? Well, the mortgage market changes from day-to-day—and your mortgage needs span far beyond just rate. Your best bet is to give me a call. We’ll talk about your specific situation, determine what mortgage features you can’t live without, and then find the best lender—with the best rate—that can address them.



Author: Axiom Mortgage

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