The trend towards people opting for variable rate mortgages has been increasing over the last month as fixed rates have increased and variable rates have decreased. It is now common to see variable mortgage rates as low as Prime – 1% (2.45%) for owner occupied properties.

Fixed rates have seen a steady increase over the last year and are now over 3.5% meaning you can save approximately 1% by going into a variable rate mortgage. Variable rate mortgages allow you to lock in to a fixed rate at any time and only carry a 3 month interest penalty if you pay it out. On the downside they do carry the risk of increasing and will therefore affect your payment if the Prime rate goes up.

One last note to consider is that in general the Prime rate will move in ¼ point increments so even if it does go up it will take approximately 4 rate increases at least in order to get to where a fixed rate is today.

If you need more information regarding mortgages or if you need any advice on your personal situation please contact our office at 604-556-3893 or email at

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