Note the hair colour before the escalating rate environment....
It may sound crazy, but choosing a variable rate mortgage may be an attractive option once more due to several compelling reasons:
Firstly, the current economic landscape shows signs of stabilizing interest rates, making variable rates more predictable. As you know, the Bank of Canada uses interest rates as a tool to control inflation, and as economies recover from periods of uncertainty and inflation comes under control, they tend to gradually decrease rates.
Secondly, variable rate mortgages typically offer lower initial interest rates compared to fixed-rate counterparts. This can translate into immediate savings on monthly mortgage payments, allowing homeowners to allocate funds towards other financial goals or investments.
Moreover, the flexibility of variable rate mortgages permits borrowers to benefit immediately from potential rate reductions in the future
Just like your investment portfolio, it's crucial to carefully assess your risk tolerance and financial stability before choosing a variable rate mortgage. Consulting a mortgage broker such as myself is highly recommended.
Please don’t hesitate to reach out if you want to discuss this or anything else. Call me anytime.
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