Tag: variable rate
Here in Canada, one popular option for home loans is the variable-rate mortgage, while lenders in the United States offer adjustable-rate mortgages. They sound pretty similar, don’t they?
Several recent studies have concluded that global and domestic financial problems will force Canada’s economy to experience limited growth in 2012, and some experts now predict the Bank of Canada will have no choice but to drop its interest rates.
Variable-rate mortgages were long considered the best way to secure the cheapest housing loan, but many real estate experts have begun advising buyers to lock in a fixed rate.
As mortgage rates remain at historic lows and listings continue to increase, Canadians entering the housing market have many important decisions to contemplate, including choosing a fixed-rate or variable-rate mortgage.
According to a recent report from BMO Economics, with interest rates remaining low for home loans and mortgage calculators showing greater affordability, more Canadians have begun debating whether fixed- or variable-rate loans are best for them.