This is a question I've been hearing more and more from clients in the last while. So I went to the source (respected and trusted Mortgage expert), to find out what they would recommend.
"The most asked question in today's mortgage market. Should I go fixed or variable? If you are unsure and need the security that a fixed mortgage will bring then I say, do both. Split your mortgage, so that 50% is fixed to give you the security you need and 50% is variable which, at the time of writing, is a much lower interest rate. We understand that it is preferable to diversify your investments, so by splitting your mortgage, you are also diversifying your debts.
Here is an example:
- Mortgage Limit of $200,000.
- A 5 year fixed mortgage of $100,000 at a rate of 5.69%= monthly payment of $522/month.
- A 5 year variable mortgage $100,000 at a rate of 4.50%= monthly payment of $447/month
- This gives you an average interest rate of 5.10%.
This type of mortgage is a Scotia Total Equity Plan mortgage (STEP) and has many other attractive features.
Hildegard O'Connell,
AMP Mortgage Development Manager
Phone: 519-574-2290
Fax: 519-749-0574
E-mail: hildegard.oconnell@scotiabank.com
Web: mdm.scotiabank.com/hoconnell
My commitment is to provide the best mortgage solution for you. The highest compliment my Clients make is the referral of their Family, Friends, and Business Associates. Thank you for your trust.