Fixed Mortgages Vs. Variable Mortgages
The evolution of personal needs has encouraged the mortgage industry to produce a variety of lending products. For this reason, when you take a look at the mortgages available today, you’re likely to see an almost endless range of options. However, irrespective of the type of mortgage you require for your needs, you’re likely to come across the variable and fixed mortgage options.
Both fixed and variable mortgages have a unique set of advantages and disadvantages, and to make the right choice for your needs, you must understand how these mortgage options work. To educate you about them, Mortgages For Health Care Workers has explained both of these mortgage categories in detail below and which one is best for you based on your preferences.
1. Fixed mortgages
A fixed mortgage is a financial product that comes with a fixed rate of interest. It offers borrowers security against the fluctuating mortgage rates as it locks in on the rate at the time of accepting the mortgage. In the event of rate increases, you are protected by the terms of this mortgage. Similarly, with a fixed mortgage, you are aware of your exact commitment for the term of your contract.
The downside to this mortgage product is that you are locked in with a specific rate, which prevents you from taking advantage of lower interest rates. If you do want to avail of lower interest rates, you’ll need to break your mortgage. This will entail a significant penalty charge.
2. Variable mortgages
Variable mortgages are flexible mortgage products that offer you the liberty to change your mortgage whenever you want to. That means you can break your mortgage before it is due for repayment. Variable mortgages are generally a great option if you’re looking to make the most of fluctuating interest rates.
The cons of this mortgage are that payments can change without warning. Moreover, if you wait too long, the fixed rates may increase before locking in.
Which option should you choose?
If you are someone who is conservative and doesn’t like to take risks, a fixed mortgage is ideal for your needs. On the other hand, if you like taking risks or are hopeful that interests will drop considerably, opting for a fluctuating or variable mortgage makes sense. Just remember, irrespective of the option you choose, you must take the time to understand the pros and cons of the mortgage you plan to avail of. Carefully read through the terms and conditions and consider your future expectations, and they will be accommodated by your mortgage.
To ensure the terms of your mortgage are ideal for you, reach out to Mortgages For Health Care Workers. We are a brokerage that specializes in mortgage products for individuals working in the healthcare industry.
We understand that being a healthcare worker means putting in long and sometimes irregular hours, covering long shifts, and a busy schedule. As a result of this, you don’t necessarily have the time to research the best options is for your needs. So, to simplify the mortgage process for you and make life easier, we offer flexible services specifically designed for you. We are available to help you from morning until late in the evening, and even on weekends. Similarly, you can rely on us as our mortgage specialist has over fourteen years of experience and is accredited to serve clients across Alliston, Ancaster, Barrie, Bolton, Brampton, Caledon, Cambridge, Concord, Guelph, Hamilton, Kingston, Kitchener, London, Maple, Markham, Mississauga, Newmarket, Niagara Falls, Oakville, Orangeville, Ottawa, Pickering, Richmond Hill, St. Catharines, Stouffville, Thornhill, Toronto, Tottenham, Vaughan, Whitby, Woodbridge, Sault Ste. Marie, Greater Toronto Area, and all over Ontario.