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If you’re in the market for a mortgage, it can be difficult finding a mortgage that fits your budget and understanding the different options. Here is a quick rundown on the differences between fixed and variable rate mortgages and how you can select the best one for you.

What’s The Difference?

Before we tackle which kind of mortgage is best for your needs, it’s important that we outline what exactly fixed and variable rate mortgages are.

With a fixed rate mortgage, your interest rate is set at the time of funding and won’t ever change throughout the term. If your interest rate starts at 4%, it will stay at 4% for the term of the mortgage. On the other hand, with a variable rate mortgage, your interest rate can fluctuate throughout the term depending on shifts in the economy. This can result in a mortgage starting at Prime (3.95%) -1.0%, so a rate of 2.95% and if Prime were to drop or go up during the term, your rate would drop or increase accordingly.

What Are Your Goals?

Everyone has different financial goals, and whether you are looking to potentially save money in your mortgage or have a steady, reliable mortgage is totally up to you. Fixed-rate mortgages are an excellent option if you value stability and are looking at exploring other financial opportunities alongside your mortgage journey. While variable rates are ideal for those who follow lending trends and work to lower their interest payments.

Whether you’re looking for stability or opportunity, I can help you achieve your goals and find the mortgage that works for you. Give me a call today or visit my website to see how I’ve helped many Saskatoon families and can help yours too.