We are consistently asked by clients how to figure out if they are a fixed or variable client. This is surprisingly easier to figure out than expected. Here are a few questions to ask yourself:
Historically speaking the variable rate mortgage is a better way to go but it is much harder to qualify for and does carry risks. Another creative option is the frozen variable payment. This locks your variable payment so essentially your payment is fixed but rate still fluctuates.
Just because you have a fixed rate mortgage doesn’t mean you are free from risk of Payment Shock. We suggest considering the Inflation Hedge Strategy to protect yourself from future raising interest rates.
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