June 10, 2015 | CREBNow
Short-term fixed re-emerging as alternative
Variable rates are back in fashion after the Bank of Canada lowered the overnight lending rate in January, and economists expect another decrease in the near future.
Yet, even though variable rates make sense, most borrowers are still leaning toward fixed-rate mortgages for no reason other than certainty. Consumers like to know what their mortgage rate is going to be.
The good news is there are options for risk-averse borrowers who don't want to dive into the variable-rate waters, but still want the low rates that come with the floating products.