When it comes to mortgages, choosing between a variable or fixed option is one of the most important decisions a borrower will make. While both options have their pros and cons, it is crucial to consider every detail before making a final choice as there can be thousands of dollars of difference in interest payments over the term. As a leading provider of complete lending solutions for residential and commercial mortgages, the team at PHL Capital Corp. knows how difficult it can be to determine which option is best for your needs. That is why we have compiled some information to compare variable mortgages vs. fixed mortgages and help you determine which is right for you.
Read our tips for first-time home buyers.
With a variable-rate mortgage, your mortgage payment will stay the same throughout your mortgage term, but the interest rate can go up or down depending on the prime rate.
Typical benefits of variable rate mortgages include:
Potential concerns or drawbacks of variable mortgages include:
With a fixed-rate mortgage, the interest rate and your mortgage payments will remain the same throughout your term.
Typical benefits of fixed-rate mortgages include:
Potential concerns or drawbacks of fixed-rate mortgages include:
To learn more about our lending solutions, get in touch with the mortgage lending team at PHL Capital Corp. We can be reached by phone at 604-579-0847 and will be happy to answer any questions you may have regarding mortgages or our application process.