In times of national change and global uncertainty, the conversation around Canadian interest rates is plentiful. Interest rate fluctuations is a natural occurrence, and depending on your risk tolerance you should decide for yourself what to do in times of increase possibility.
Some economists have predicted interest increases in light of the newly formed USMCA. Current or potential homeowners who has a variable mortgage interest rate must evaluate their current needs, determine if anything has changed and if they can tolerate potential increases to their mortgage payments. It's a good time to re-evaluate anytime there's a change in personal circumstance or national mortgage changes.
Options
- Review your payment frequency: If you're currently paying on a biweekly accelerated schedule, perhaps changing to a monthly payment frequency may give you extra room in your budget
- Lock into a fixed interest rate: Contact your lender to learn what their current fixed rate options are. If this is of interest to you, consider locking in to a fixed rate.
- Refinance: Contact your Mortgage Professional to determine if refinancing to consolidate other debt, choose a fixed interest rate, and/or extend your amortization is the right choice for you.
Factors to Consider in Variable or Fixed?
- Financial Goals
- Budgeting ability
- Employment security
- Risk tolerance for change
- Cash flow
- Homeownership experience
My Approach
I help my client's obtain information they need to decide if a fixed or variable interest rate is best for them. There are benefits and drawbacks to both fixed and variable interest rates, and it's a very personal choice based upon the applicant's unique situation.
Want to discuss interest rates? Got a mortgage questions?
Sarah Nixon-Miller, Mortgage Broker
Toll-free Across Canada 1-844-315-6609
sarahnm@mortgagegroup.com