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Anu Khullar - RE/MAX River City
301, 10171 Sask. Dr. , Edmonton, Alberta
P: 780-439-7000
F: 866-293-5424
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Monday, October 24, 2011 - Is it time to switch from a variable to a fixed rate mortgage?

Is it time to switch from a variable to a fixed rate mortgage?

With rates so low on fixed term mortgages these days, more and more Canadians are asking if it’s time to switch to a fixed term mortgage.

Deciding what to do depends on a number of factors, but a good place to start is a closer look at your goals.

If you’re trying to save money or lower your payment, a variable interest rate is usually one of the lowest mortgage rates offered. The downside is that in an increasing rate environment, your interest rate will rise as the Prime Rate rises — possibly costing you more in the long run.

If peace of mind is what you’re after, a fixed rate provides the security of knowing what the interest rate will be for the term of your mortgage.

In addition, your goals or circumstances may have also changed over time. Perhaps you’re thinking about starting a family and want the predictability of knowing what your interest rate will be. Or maybe you’re finding it hard to sleep at night because you feel that interest rates are likely to rise. These are good indications that you might be a good candidate for switching.

If you still can’t decide between a fixed or variable mortgage, the RBC Homeline Plan® account may be the right option for you. The RBC Homeline Plan account lets you choose both fixed and variable interest rates. Think of it as a way to diversify your housing investment, much like you would your investment portfolio. How you split up the percentage of fixed to variable is entirely up to you.

In the end, choosing the right mortgage term is a personal decision. Whatever your circumstances or concerns, come and talk to us and we can help you decide what would be best for you.

Personal lending products and residential mortgages are provided by Royal Bank of Canada and are subject to its standard lending criteria.

® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.

Your new home doesn't come with mortgage advice. I do.
Contact me today:
SHERI MITCHELL
Mobile Mortgage Specialist
RBC Royal Bank
780-760-5364
sheri.mitchell@rbc.com
 

posted in News at Mon, 24 Oct 2011 14:04:56 -0600



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