Fixed vs Variable

Variable Rates

  • Variable Rates are based on the Bank of Canada’s Prime Rate which is currently at 3%. The BOC meet quarterly and discuss whether to change the rate or not based on the Real Estate Market. Banks/Lenders then decide what Variable Rate they are willing to loan there money out for.
  • Your monthly payments might change if the Prime Rate changes.
  • Historically Variable rates have been lower than fixed rates.

Fixed Rates

  • Fixed Rates change based on Canadian Bond Yields. A bond Yield is the amount of return an investor gets from buying a Bond. Therefore if the price of a Canadian Bond increases the yield/fixed interest rate decreases.
  • Monthly Payments will NOT fluctuate.

Click this link to see what the current Fixed and Variable rates are –

If you have any questions please contact me at [email protected] or by phone at 604 561 6716