Homebuyers Choose Predictability and Stability over Best Rate

Written by: Tristan Vera

For many of us, the purchase of a home will be the single, most significant investment we make in our lifetime. Along with the many decisions that come with buying a home, one of the first will be deciding between a fixed or variable rate mortgage.

In a recent online Facebook poll that Westoba conducted, 82 per cent of respondents told us they prefer fixed-rate mortgages over variable rate mortgages. These results are in line with industry averages.

As the name suggests, with a fixed rate, your mortgage rate and payments remain the same over the term of your mortgage agreement. With a variable rate mortgage, your rate and payments will change based on the prime lending rate set by your bank or credit union.

“The first question I ask members is whether they’re comfortable with the rate going up,” said Financial Consultant, Tristan Vera located at Westoba’s Portage Avenue location in Winnipeg.  “Depending on your stage in life, a change in your monthly payments can add unnecessary stress.”

If a member prefers to have consistent payment amounts, then a fixed rate is likely the best option for them. However, if a member feels like they can handle potential fluctuations, they may want to go with a variable rate, which could result in lower payments if the rates remain low/stable. It really comes down to a personal choice.

If you’re unsure which option is right for you, make an appointment with one of our friendly, professional Mortgage Specialists and we’ll help find a mortgage that works for you.

Quick reference guide for Fixed or Variable Mortgage Rates: