• Robert Floris CFP, AMP
    Lead Mortgage Agent
    M08004919
    905-574-9200 Ext. 215

  • Should I Take A Fixed Or Variable Rate?

  • Should I Take A Fixed Or Variable RateShould I Take A Fixed Or Variable Rate Mortgage?

    We always teach our clients that this choice depends on their own personal risk profile and their personality. Many of our clients sleep better at night knowing exactly how much their mortgage payments will be for the next 5 years and how much they have budgeted. Others don’t mind “riding the wave”!

    Mortgage Rates Should Remain Low In 2019

    Why have we been suggesting the variable rate mortgage (VRM)? It’s because we anticipated that the economy would slow and that the Bank of Canada would have no choice but to reflect that. With the unprecedented amount of unsecured debt held by Canadian families, we predicted that it would be detrimental for rates to increase much higher. This factors in heavily when deciding Should I Take A Fixed Or Variable Rate Mortgage.

    Look To The Past To Predict The Future

    Just like everything in nature, economies tend to cycle. Everybody remembers in 2008 and 2009 when the stock market crashed. Governments including Canada started to lower interest rates to spur the economy, and mortgage rates followed suit. Well, most clients we interview at Robert Floris’ Mortgage Architects office believe mortgage rates are going higher. We really believe the opposite. In fact, fixed mortgage rates have already fallen heavily, by more than .35% in some cases. We’re expecting those drops to continue.

    Why Are Mortgage Rates Dropping?

    The Canadian economy is not doing so well, and with this news, the Bank of Canada does not believe they will be raising the prime rates anytime soon. Quite frankly, the opposite appears to be more realistic. We may see a rate drop. If you are not afraid of variable or adjustable rate mortgages, this may be a good time to try them. Either way, fixed or variable rates will and should be stable in 2019 barring any unforeseen circumstances.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

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    Thanks for reading!

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