Michelle Farrugia quoted by Rates.ca: ‘Mortgage temperature check: Canadians watching for a turning point in the housing market’

Michelle Farrugia, mortgage broker and director of sales at Mortgage Outlet Inc. shares two popular options that make the most sense in today’s mortgage market – a 3-year fixed or a variable rate, depending on your risk tolerance.

“The one and two-year terms are priced at or higher than the variable rate on most products, and choosing these options would mean you believe the rate market will come down in that time,” she explains.

She suggests those who share that belief might benefit from the similarly priced variable rate and ride the cresting wave of future rate drops. However, more conservative buyers might opt for the 3-year fixed rate, which is sitting lower than the variable rate and may provide interest savings in the interim as the rest of the country waits for rates to come down.