Is A Variable Rate Mortgage Right For Me?

When you get a mortgage, there are many features to consider. One of the key decisions is whether to go with a fixed or variable rate mortgage. As fixed-rate mortgages continue to climb, homebuyers looking for a mortgage have to work fast to get low rates while they still can. Fortunately, even while fixed-rate rates keep increasing, rates on variable mortgages remain steady at record lows. As an expert in the field, Mohit Verma - Mortgage Broker has written down information that will help you decide if a variable rate mortgage is right for you. 

In a fixed-rate mortgage, the interest rate never changes. As the name suggests, with a variable-rate mortgage, the interest rate varies throughout the life of the mortgage product. It will fluctuate with market conditions and interest rates going upwards or downwards. Flexibility is definitely the greatest asset to a variable rate. You don’t need to worry about penalties if you want to increase your monthly mortgage repayment, pay off your mortgage early, or switch to another lender. 

Before opting for a variable rate mortgage, you need to ask yourself if you are comfortable with payment and rate fluctuations when paying down your mortgage balance? It is important to keep in mind that a variable rate, unlike a fixed rate, can be converted into a fixed rate, with most lenders, during the mortgage term, whereas a fixed rate cannot be converted to a variable rate. 

If you are not the type to trust a product that fluctuates so often, then maybe you can choose a fixed-rate mortgage. A fixed-rate mortgage is generally a good option for those who favor predictable payments through the long term. Suppose you have no plans for an immediate career change, family change or home change and require fixed monthly payments to plan your financial budget. In that case, a fixed-rate mortgage will probably work best for you. Ask your mortgage broker what the current rates are and discuss your situation. They will be able to use their professional experience and knowledge to assist you in deciding which rate would suit your needs the best.

If you are looking for a mortgage broker in Toronto, Ontario, reach out to me at 1-855-303-5363 or send us an email to mohit@tcglendingcentres.com. I specialize in home equity loans and second mortgages. I am also a rescue financing specialist in complicated residential mortgage refinancing. I undertake a wide range of mortgage and financing solutions for customers in all situations.

I also offer alternative mortgage solutions and unlimited mortgage options to individuals with debt and mortgage complications and let you decide which is suitable for you. I offer services like second mortgage, rescue financing, mortgage refinancing, mortgage renewal, home equity line of credit, etc., to clients across Scarborough, Brampton, Mississauga, Oshawa, Barrie, Vaughan, Toronto, and Richmond Hill, Ontario. To learn more about the services I offer, please click here. To get in touch with me, please click here.