BUYERS ARE CONSIDERING LOW FIXED RATE MORTGAGES,
What should you consider?
This is an age old dilemma for Buyers when they are ready to make a home purchase. "Should we go fixed or variable on our mortgage?" This is a question I constantly get asked by clients, with unfortunately no simple answer. According to the Canadian Association of Accredited Mortgage Professionals, 79% of those buyers who took on new mortgages in 2012 opted for fixed rates rather than variable. Ratehub.ca quotes that 85% of their inquiries in February, 2013 were for fixed rates. Inflation is a crucial factor affecting rates and the Bank of Canada closely monitors the inflation rate and adjusts interest rates accordingly. The current spread between fixed and variable rates is minimal. Ask lots of questions about penalties, fees and conditions on the mortgage before you make your final choice on fixed or variable. Happy mortgage shopping!