Subject-Free Offers Are A Necessary Evil
Subject-free offers mean that there are no conditions whatsoever when offering …
Written by Steve Pipkey
The age old “Fixed Rate Vs. Variable Rate” debate rages on as borrowers determine which one makes the most sense. Generally speaking, we’ve always preferred variable rates, but it ultimately depends on your financial profile and prevailing market conditions. The characteristics listed below for each type of mortgage assumes full features and no restrictions.
Typically, interest rates are higher on a fixed rate mortgage compared to the variable rate option, but this is not always the case. Over time, variable rates have outperformed fixed rates; however, the key advantage in our humble opinion is the penalty predictability. Circumstances change for people over time and mortgage requirements evolve. We take comfort in knowing that the exit strategy for a variable mortgage is only 3 months interest, which is immaterial. Ultimately, it comes down to a borrower’s risk profile and market conditions. We’ve created a calculator that will help you with the choice to see which one suits you best.