Mortgage Strategy VS Rate

Rate Strategy

For every 10 applications we get today, half of our clients want a 3 or 5-year fixed-rate mortgage, and the other half want a variable-rate mortgage.

3 Year Fixed Strategy - For those who believe rates will bottom out again, once everything stabilizes, but expect it will take a while yet.

5 Year Fixed Strategy - For those who prefer payment stability in the foreseeable future and don't want to worry about what is going on in the economy for the next 5 years.

Variable Rate Strategy - For those who believe the Bank of Canada will cut rates further in December and want to take advantage of at least one more cut before locking their rate in —if they do at all.

Diversified Rate Strategy - An excellent option for those who want the best of both worlds without putting all their eggs in one basket. For example, taking a 400K mortgage and putting 250K into a 3-year fixed term, 100K in a 5-year fixed term and 50K in a variable rate term. This way, they are not 100% affected by any rate changes. This is the same strategy one might use when considering how to invest savings (low, medium, or high risk). In the example below, the average rate is 3.88%

Nobody expected rates to bottom out during COVID, nobody expected them to soar after COVID, and nobody can predict the future. The best approach for each person is the one that they see value in and can live with.

Our approach is to talk it out with you and help you find your comfort level.