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Economic uncertainty worries new buyers or certain owners renewing their mortgages. Variable rates, which fluctuate according to the Bank of Canada’s key rate, are now higher than fixed rates, which fluctuate according to the bond market. (archives)PHOTO : getty images/istockphoto / marchmeena29

Economic uncertainty worries new buyers or certain owners renewing their mortgages. Variable rates, which fluctuate according to the Bank of Canada’s key rate, are now higher than fixed rates, which fluctuate according to the bond market. According to Simon Bilodeau, mortgage broker at Dominion Lending, you have to be careful and give yourself some leeway. For new buyers, the choice is clear, he believes.

The variable rate is no longer attractive at the moment, because the best rate starts at 5.8%. If you have the same 5-year fixed-rate mortgage at 4.8%, it’s a difference of 1% that is major, especially for the first few years. Because the first year is the year you pay the most interest. You want to have the lowest interest rate to save the most.