Variable Rate or Fixed?

According to the market the variable rate may be the way to go.

One of the toughest questions we face at Mortgage Architects is what product we would choose; the variable rate or the fixed rate. In the last six months it would be the variable rate mortgage. The reason it is difficult is because the variable rate suits my risk tolerance and for clients who get to know me, I study the market as best as I can. To the best of my ability, I get the pros and cons of each product and let the clients decide. It is a very personal choice.

The Bank of Canada has not done me a favour by raising rates recently, but we felt that things were cracking in the Canadian economy. My spirits were lifted when I read Robert McAllister’s Globe and Mail article on December 5, 2018. To paraphrase the article, based on the Canadian oil industry, tariffs and low savings rate, the bond yields have dropped.

This is the opposite of what happens in a culture of rising rates.

Therefore, taking a variable rate mortgage is the product you should consider in this scary time where everybody is predicting higher rates.

Any questions, please call Robert Floris’s office, no obligation, easy to talk to, honest answers.

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.

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