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. This may not be the best thing if you are a worrier.
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. Getting a fixed rate mortgage is something that will help you not to worry about rates fluctuating and having your rate suddenly go up.
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!