Fixed vs Variable: Two brokers weigh in

According to Ann Brill, Principal Broker of Centum Metrocapp Wealth Solutions variable mortgage rates have become less enticing than they have been in the last decade. The recent uncertainty with interest rates carry more risk than customers can afford. She believes that with the way government is talking of potentially more increases in October, the spread between variable rates and five year rates is not worth the risk of doing the variable. She says that each mortgage is unique to her client needs but the variable rate is beginning to lose ground to fixed rates in recent months.

Adma Maher, mortgage agent with Assured Mortgage Services, on the other hand, says that she still recommends the variable rate to her clients because if rates begin climbing, clients can always call their bank and lock their rate. She says that if their plan is to sell down the road within five years, she advises them to take the variable rate. She recommends that they keep an eye on the market and if at any point the rate goes up they have the option of locking for five or six years.

There are many opinions when it comes to choosing a fixed or variable mortgage rate. However the final decision comes down to the your unique goals and situations. That is why we recommend that you seek advice from a professional mortgage broker.

Feel free to call me at any time at 416-830-1510

Rudy Lochan


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