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Variable vs. Fixed: Navigating Today's Mortgage Landscape in Canada by Larry Heran

The Canadian mortgage market is currently experiencing a dynamic shift. After a period dominated by the three-year fixed rate, the variable rate mortgage is making a strong comeback. With the Bank of Canada prime rate currently at 5.45%, variable rate mortgages have become incredibly competitive, offering significant potential savings for borrowers.

The Dilemma: Variable vs. Fixed

Historically, variable rate mortgages have been the preferred choice for many Canadian borrowers. However, the recent period of rising interest rates saw the three-year fixed gain significant popularity. Now, with the potential for further rate cuts, the variable rate mortgage is regaining its appeal.

The Numbers

* Five-Year Fixed: As low as 4.34% for borrowers with 5% down.

* Five-Year Variable: Prime minus 85 basis points, translating to 4.60% at the current prime rate.

These are exclusive promotional rates available for a limited time. Don't miss out on this opportunity to potentially save significantly on your mortgage payments.

This presents a compelling choice:

* Fixed Rate Mortgage: Offers certainty and peace of mind with a predictable monthly payment. No need to worry about fluctuating interest rates.

* Variable Rate Mortgage: Provides the potential for significant savings, especially if interest rates continue to decline.

Risk Tolerance: The Key Factor

Ultimately, the decision between fixed and variable hinges on individual risk tolerance and financial goals.

* Choose a Fixed Rate Mortgage if: You prioritize certainty and predictability. You prefer a consistent monthly payment and want to avoid the potential for rate increases.

* Choose a Variable Rate Mortgage if: You are comfortable with some level of uncertainty. You believe interest rates will continue to decline. You value the flexibility and potential for lower long-term costs.

Important Considerations:

* Penalty Costs: Variable rate mortgages typically have lower penalties for breaking the mortgage term.

* Term Length: If you plan to stay in your home for the long term (5+ years), a fixed rate mortgage may be a more suitable option.

City Centre Mortgages

These are exclusive promotional rates available for a limited time. Don't miss out on this opportunity to potentially save significantly on your mortgage payments.

Contact City Centre Mortgages today to learn more about these competitive rates (prime minus 85 variable and 4.34% fixed) and to discuss your specific mortgage needs. We can help you determine the best option for your individual circumstances and guide you through the entire mortgage process.

Schedule a free consultation with one of our experienced mortgage specialists by visiting our website or calling us directly.

Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.

Location: Surrey, BC, Canada

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