New to Real Estate · London, ON · Member since 2022 · 26 posts · 5 votes
In Canada how can I determine what would be a better type mortgage a variable or fixed rate up to 5 years? What are you recommendations for different situations.
If you plan to keep for a year go variable and lowest cost. If you plan to keep more than four years there is only a tiny shade different in payment for a fixed rate loan.
In this market, it would absolutely make sense to go Variable. Rates "should" come down in the next 24 months, so as long as you plan to refi sooner rather than later, then you would be good.
I have ran the math many times, and there really isn't any benefit to doing a 7yr ARM or 10yr ARM.
In Canada how can I determine what would be a better type mortgage a variable or fixed rate up to 5 years? What are you recommendations for different situations.
@Rami Sobhani I feel the right thing to say here is "what are you prequalified for"? Meaning, maybe you cannot even qualify for a variable interest rate because of X reason....or maybe you cannot even qualify for a fixed rate because of X reason. There are lots of different loans out there. Sometimes the property you are seeking might only qualify for a 15 year, adjustable rate mortgage. So I think the right thing here is to seek out a lender that will help you with what you are trying to accomplish first.