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Fixed or Variable Rate Oakville Standard Mortgage. Which Is Better?

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Buying a home excites people in Oakville. However, it is an intricate process at the same time. Firstly, homebuyers need to find a reliable broker to aid them in getting a mortgage to buy the house. Homebuyers can search for lenders on their own, yet it is not easy for homebuyers to find the right lenders. Once the homebuyers find a broker, a broker help homebuyers find the right lenders for the mortgage. The best brokers also suggest homebuyers regarding the fixed and variable rate Oakville mortgage. They do it to aid homebuyers to benefit from mortgages, suiting them the best.

Fixed-Rate Mortgage


It means the interest rate for the mortgage will remain the same till its renewal. Many choose such a mortgage for five years, and some choose an even longer duration. Bond yields of the Canadian government at the time of purchase determines fixed-rate mortgages. With such a mortgage rate, you know how much interest and principal payment you pay in a month and so.

Variable-Rate Mortgage

You can also call it an ARM (Adjustable-Rate Mortgage). You can guess from the name that the interest rate for such a mortgage fluctuates throughout the mortgage term. Bank of Canada’s lenders’ prime rates determines variable-rate mortgage. As the prime rate fluctuates over the term, this interest rate will alter for the better or worse.

Why Should You Consider a Fixed-Rate Standard Mortgage?

Fixed-rate mortgage term has benefits for homebuyers. Here are those:

1. Fixed-rate mortgages are not intricate to comprehend; thus, you can understand them easily.
2. Mortgage payment amounts stay the same all through the term of the mortgage.
3. You know what to expect from such a mortgage in Oakville because of a sense of security.
4. It is also convenient to budget for household costs



Interest charged reduces with the reduction in your principal; consequently, more payments go towards the principal.

If you have a tight budget and cannot adjust it/pay other expenses, temporarily or slightly, this is your option. Choosing this mortgage rate for home buying won’t let you or your family suffer from any financial hardship.

Why Should You Consider a Variable-Rate Mortgage?

Fixed-rate mortgage appeals to those borrowers who want peace of mind concerning their mortgage payment. Nevertheless, the thought of initial lower monthly payments is more appealing. Here are the benefits that you can get if you choose a variable-rate mortgage for property buying:

1. This mortgage rate is lower than the fixed-rate mortgage, usually below the market rate.
2. Variable-rate mortgages are less expensive over the mortgage term
3. Initially, a lower payment can aid you in qualifying for a loan.

Variable-rate mortgages may seem more appealing to homebuyers; however, there are prime rate fluctuations risks. You can save money over the mortgage term with a variable Oakville mortgage; nonetheless, the rates can increase substantially. Consequently, you would need to pay higher monthly payments.

Additionally, you can obtain a mortgage term between a few months & five years in Canada. Once the term ends, you must renew your mortgage. It provides you with the opportunity to switch to a fixed-rate mortgage or benefit from the low interest rate if available.

What Should You Ponder When Choosing a Standard Mortgage Besides Benefits?

You must think about certain things over and above the benefits of a fixed or variable-rate mortgage. Here are the things you must ponder:


1. Down payment amount
2. Bank to bank mortgage rate comparisons
3. Mortgage principal
4. Amortization period
5. Supplementary monies to add to your payments monthly, like a flood or title insurance
6. Property taxes
7. Mortgage term
8. Hybrid mortgage possibility


Home buying excites people, yet the procedure to buy a property is intricate. Plus, it is not easy for a homebuyer to find the best lender for the mortgage. Finding a reliable broker aids homebuyers in finding the best lenders to get mortgages. Furthermore, homebuyers can get mortgages from lenders as a fixed-rate Oakville mortgage or variable-rate mortgage. Fixed-rate mortgages remain the same throughout the mortgage term. However, variable-rate mortgages are the opposite. Fixed-rate mortgages are also easy to understand for homebuyers and suit people with a strict budget. Variable-rate mortgages are more appealing yet have prime rate fluctuation risks. Finally, mortgage rates, homebuyers should consider a few other things as well to pay their mortgages successfully.

Patrick Romann ( is an independent Standard Mortgage Agent in Oakville dedicated to helping you build and execute the best mortgage plan with mortgage services.

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