One of the first steps when picking a mortgage is picking what type of mortgage you want. Do you want a NB fixed rate mortgage, or a variable rate mortgage? But before getting into that, knowing the difference between a fixed rate and variable rate might help you choose the best option for you.
A NB Fixed Rate Mortgage means that whenever you sign your mortgage you are locked in at that rate for the duration of your mortgage. The good thing about having a fixed rate is, you can set it and forget it. A con might be that you could be paying more if the rates ever decrease.
A Variable Rate Mortgage means that your rate fluctuates over your mortgage period. The good thing about this is, you usually get a lower rate than a NB fixed rate mortgage starting out. The con could be that your rate might go up with little to no warning.
Things to Consider with a NB Fixed Rate Mortgage
One of the first things you should consider when picking a mortgage rate is your income. Are you able to afford if your rate suddenly goes up? If so, you might want to consider a variable rate mortgage. If not, you should probably go with a NB fixed rate mortgage.
The second thing you should consider is your personality. If you are a person that is always worrying about whether their rate is going to go up, you should probably stick with a NB fixed rate mortgage instead of a variable rate mortgage.
NB Fixed Rate Mortgages seem to be the most popular choice in today’s market.
If you would like to talk to Team Jardine about a NB variable rate mortgage, you can reach us at Ph: 1(866)957-2263 or you can fill out the email form on our contact us page!