Friday, 29 November 2024
By Mortgage Outlet
https://torontosun.com/life/homes/mortgage-delinquencies-could-continue-rising
If your mortgage is coming up for renewal, you may be wondering if you should opt for a fixed or variable mortgage rate. Leah Zlatkin, licensed mortgage broker and COO of Mortgage Outlet, suggests switching to a fixed-rate mortgage at renewal could provide much-needed stability and budget predictability in these uncertain times.
According to the mortgage broker, the lowest rate for a three-year insured fixed-rate mortgage is 4.19 per cent and the current lowest rate for a three-year variable is 5.05 per cent. “Borrowers with variable rates will be renewing at significantly higher rates, meaning higher monthly payments,” she says.
“If you are fortunate enough to be in a position in which higher rates for a longer period won’t significantly damage your finances, then a variable rate may make sense as further rate cuts are anticipated,” Zlatkin says. “For those with tighter finances, choosing a short-term fixed rate mortgage to bridge the uncertainty gap and wait for rate volatility to settle might make sense. Some homebuyers simply prefer the set-budget strategy that a fixed- rate mortgage offers.”
