One very important decision you need to make when purchasing your new home is the type of mortgage you want; Fixed or Variable

A Fixed mortgage rate may be slightly higher than a Variable rate, but it can offer peace of mind to those who like to stick to a budget and not worry about changing interest rates. A Fixed mortgage is just what the name implies, the mortgage payment you have at the beginning of your mortgage term will remain the same throughout your term, even if interest rates change. The potential downside is the penalty you may incur if you need to break your mortgage early.

With a Variable mortgage, your loan is adjusted each time the prime rate fluctuates. If the prime rate decreases, more of your payment will go towards the principle which will pay your mortgage off quicker. Same in reverse, if the interest rate rises, less will go towards your principal. If there is a chance you may need to break your mortgage early, having a variable mortgage may provide the flexibility you require.

Be sure to speak with your bank or broker to have them explain the pros & cons of each type in order to find the best fit for you. If you are looking for a broker, please reach out and I can steer you in the right direction.