Fixed vs. Variable: Choosing the Right Mortgage Rate for You in Alberta
Bank of Canada holds rates steady as tariff turmoil continues
Here at the Collin Bruce Mortgage Team, we know that one of the first decisions Albertans face when securing a mortgage is whether to choose a fixed or variable rate. Both options have their advantages, and our goal is to help you understand the differences so you can make the choice that fits your financial goals and comfort level.
Our Take on Fixed-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the term of your mortgage, which means predictable monthly payments. We often recommend this option for clients who value stability and want protection from rising interest rates.
Why We Like Fixed Rates:
- You’ll know exactly what your payments will be each month
- Provides peace of mind in an unpredictable market
- Ideal for long-term budgeting
Things to Keep in Mind:
- Initial rates are typically a bit higher than variable options
- If rates drop, your rate remains the same
Our Take on Variable-Rate Mortgages
A variable-rate mortgage moves with the prime lending rate and can fluctuate over time. While it comes with some uncertainty, we often see clients benefit from lower initial rates, potentially saving thousands if interest rates remain stable or decrease.
Why We Recommend Variable Rates for Some Clients:
- Lower starting rates compared to fixed mortgages
- Opportunity to save if rates don’t increase dramatically
- Can offer flexibility to pay down your mortgage faster
Things to Keep in Mind:
- Payments can increase if interest rates rise
- Requires comfort with some fluctuation in monthly costs
How We Help You Decide
The choice between fixed and variable really comes down to your personal goals and risk tolerance. At the Collin Bruce Mortgage Team, we take the time to review your situation, current market trends, and future plans to guide you toward the option that best meets your needs.
Whether you’re buying your first home, renewing your mortgage, or refinancing, our team is here to ensure you feel confident in your decision. We provide clear explanations, comparisons, and recommendations so you can focus on what matters most — making your homeownership journey smooth and stress-free.
Reach out to us today, and let’s find the mortgage rate that’s right for you.
Have questions? Give us a call and we’ll be happy to walk you through the home-buying process.
