Variable Rate Mortgage as a Strategic Step Toward a Future Fixed Rate

At this point in the interest rate cycle, opting for a variable-rate mortgage may offer strategic advantages while watching how the central banks in the US and Canada deal with the current economic and business climate. It would appear that variable rates will lower much quicker than fixed rates, which tend to exhibit volatility both up and down in response to market and economic conditions.

By choosing a variable-rate mortgage now, you may retain the flexibility to switch to a fixed term at a later date, equal to or greater than the term you have remaining. This approach can serve as a temporary strategy allowing you to lock in when fixed rates potentially stabilize at a more favorable level, or it may lead you to stay with the variable rate if it aligns well with your financial goals.

Ultimately, the best choice depends on your personal circumstances and risk tolerance. Taking the time to explore and understand all your options is always a wise plan.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

✉️ [email protected]

☎️ 416-890-1365