What type of mortgage rate should I pick: variable or fixed?

Choosing the right type of mortgage rate depends only on you and your tolerance for interest rate risk, as on your financial situation.

Fixed mortgage rates offer more security because all your payments will stay the same for the whole period of your mortgage term, while the variable mortgage rates adjust to the market conditions, meaning your mortgage payments can go up or down and up and down, depending on the conditions on the mortgage market. If you are looking for the lowest mortgage rates, than usually the variable mortgage rates will be the best choice because they tend to be lower compared to the fixed mortgage rates in Montreal, Quebec and Canada in general.

In the same time fixed mortgage rates are very popular recently among Canadians, because they offer historic lowest mortgage interest rates, precisely in Montreal, Quebec.

 

Percentages of Mortgages by Multiple Criterias

Mortgage Type Purchase 2013 Renewal / Refinance 2013 All Mortgages
Fixed-rate 82% 66% 66%
Variable or Adjustable Rate 9% 24% 26%
Combination 9% 10% 8%
All Types 100% 100% 100%

Origin: Annual State of the Residential Mortgage Market in Canada, November 2013