- On June 14, 2017
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As house-hunting season shifts into high gear, you need to consider many factors before making an offer. One of the most important is determining what type of financing you’re going to apply for — a variable or a fixed mortgage rate.
Variable Mortgage Rate
As the name states, this type of mortgage rate fluctuates each month depending on the prime interest rate. If one month the interest rate decreases, more of your monthly mortgage payment goes toward paying off your principal. However, if the rate increases, your payment will go toward paying down the interest.
Fixed Mortgage Rate
This type of mortgage rate has a pre-determined interest rate for a certain period. Most fixed mortgage rates have terms between 6 months and 10 years — meaning your monthly payments will always be the same.
|Variable Mortgage Rate||Fixed Mortgage Rate|
|Best For||Homeowners who can withstand small amounts of risk and want to be aggressive when maximizing their savings on mortgage terms.||First-time homebuyers or those who are risk-averse.|
Click here to learn more about a Truth North mortgage or to speak with a Mortgage Specialist who can help you determine which rate option is best for you.
1 Earn a one-time offer of 5,000 Hudson’s Bay Rewards points when you complete either a pre-approval or regular approval application to lock in your rate and 35,000 Rewards points when you fund a mortgage valued at $350,000, at a rate of 1,000 Rewards points for every $10,000 of a funded mortgage.