Now is the time to get a variable-rate mortgage – why is that? Let me explain.
For the better part of this year, people were choosing fixed rates for their mortgages—usually a three-year fixed rate, sometimes a five-year fixed rate. But now in the last couple of weeks, it’s time for people to start putting their toes back in the variable rate swimming pool.
The reason for that is the economy is slowing down. We’ve heard that Canada may be in a technical recession and as things slow down, the Bank of Canada will be under pressure to start lowering rates and hopefully get the economy going before it stalls out. And so if you take a variable rate now, it’s only slightly higher than a fixed rate.
So a year from now, if rates have come down, you may be well served by taking the variable and having a lower rate then.
I also have a helpful video about whether to get a mortgage or a car loan first.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker Edmonton.