Saturday, July 17, 2010
This is yet another debate in the Real Estate world. Do you pick a variable or fixed rate mortgage? In theory, it shouldn't be a debate at all. The fixed rate is determined from forecasts on the average of how rates will be 10, 20 or 30 years from now. If you're in a variable mortgage, you're paying the going rate at any given time. So, on average ... it should be about the same. However, as we all know, the markets don't usually behave according to the average and strange things can happen.
The video above does give some good points to consider. Always ask yourself, is this your long term home or is it temporary? This will give you a solid frame of mind when making a decision and will allow your mortgage broker to serve you better. Make sure to get as much information as you can and once you've made a decision, feel comfortable.
If you're interested into looking at the breakdown of how the two compare a bit more closely, read this great article here. It is written for an American audience but considering how closely related the markets are, it can still be pertinent information.
Finally, don't forget to visit Ottawa Moves. We have some other great mortgage tips which will really help. Take a look today!
Posted by Jessica at 1:19 PM