As the Bank of Canada lowered its policy rate to 2.25% yesterday, many borrowers are wondering whether it is better to choose a fixed or variable rate. Speaking with Noovo Info, Roy Nakhal, a mortgage broker with Multi-Prêts Hypothèques, emphasized the importance of fully understanding your personal situation before making a decision.
According to him, the dynamic between rates has completely shifted over the past year. At the beginning of the year, variable rates were higher than fixed rates, whereas today the opposite is true, a return to a more typical market environment. This change may once again make variable rates attractive for borrowers who are willing to take on a bit more risk. “If you’re comfortable taking on slightly more risk with a variable rate, it could potentially cost you a bit less compared to a fixed rate, which may be slightly more expensive but offers peace of mind,” he explains.
A mortgage broker can analyze your profile, risk tolerance, and financial goals to determine the most advantageous strategy for you, whether that means choosing a fixed rate for greater stability or a variable rate to take advantage of a declining rate environment. Take the time to discuss your options: informed decisions are always the most rewarding in the long run.