The #1 question I am asked by clients is should I go fixed or variable (VRM). This isn’t always an easy answer to provide as it really depends on the client. This is why sitting down with a mortgage planner makes good sense. I can explain in detail the differences between a Variable and Fixed and the pros and cons of both.
One item I always like to show clients trying to decide on Variable or Fixed is the historical rate sheets comparing Fixed vs. Variable.
Historically looking back 25 years you would have consistently come out ahead if you had chosen Variable for the length of your mortgage.
Now, with the recent CMHC mortgage changes coming into effect April 19th, 2010 it will make it more difficult for clients to qualify for a VRM. With Canadian interest rates unlikely to soar if you can qualify for a VRM it can save you thousands of dollars on your mortgage interest.
For those interested in seeing the most recent Fixed vs Variable chart it can be downloaded in PDF format below.
If you have more questions or would like me to show you how you can take years off your mortgage by going Variable please contact me.