Dwayne Kavanagh
Mortgage Agent Level 2 - M22004377
Tel: 416-937-5991 | Cell: 416-937-5991 | Fax: 905-574-7384
Choosing between a fixed-rate and variable-rate mortgage can feel like a daunting decision. But it doesn’t have to be! In this video, I break it all down for you, using a real-life example to show how variable-rate payments adjust and why fixed rates are currently below the 25-year average.
👉 Watch the full video below to learn:
If you’re in Ontario, Canada, and looking for a mortgage agent who can simplify the process and help you make informed decisions, I’m here to help!
A fixed-rate mortgage locks in your interest rate for the term of your mortgage, typically 1–5 years. This means:
When is a fixed-rate mortgage a good choice?
A variable-rate mortgage fluctuates with the lender’s prime rate, which is influenced by the Bank of Canada’s interest rate decisions. This means:
When is a variable-rate mortgage a good choice?
Right now, fixed rates are lower than the historical average of the past 25 years. This is due to a mix of economic factors, including the Bank of Canada’s efforts to stabilize inflation. While fixed rates offer an attractive option, they may still cost more than variable rates if rates decline in the future.
What Economists Are Predicting:
Let’s say you choose a variable-rate mortgage and the lender’s prime rate increases by 0.50%. Your monthly payment may go up slightly, but the portion of your payment allocated to interest will increase, while the principal portion decreases. This adjustment could affect your overall repayment timeline.
What This Means for You:
No matter what economists predict, the best mortgage for you depends on your personal goals and risk tolerance. Ask yourself:
Choosing between fixed and variable rates doesn’t have to be stressful. I’m here to help you navigate the options and make an informed decision tailored to your needs.
📞 Call: 416-937-5991
📧 Email: dwayne@kavanaghmortgages.ca
🌐 Website: https://kavanaghmortgages.ca/
This blog and video are for informational purposes only and not intended as financial advice. Always consult a licensed mortgage agent for personalized guidance. I am licensed in Ontario and am not soliciting business outside of this province.