Choosing a Mortgage Rate

When taking out a home loan, one of the biggest decisions is choosing between a fixed rate and a variable (adjustable) rate.

Fixed Rate Mortgage

• Pros: Stability. Your interest rate and monthly payments stay the same for the entire term.
• Cons: Usually higher initial rate compared to variable.
• Best for: People who plan to stay in their home for a long time and prefer predictable budgets.

Variable Rate Mortgage

• Pros: Lower initial rate. Potential to pay less interest if rates drop.
• Cons: Uncertainty. Your payments can increase if market rates rise.
• Best for: People who plan to move or refinance soon, or those who can tolerate some risk.