Saving Thousands by Making Sense of Mortgage Terms

In a recent discussion with a client, the question of “fixed” versus “variable” mortgages came up. She wanted to go with an “open variable” rate mortgage, which surprised me because they are often more expensive. When I asked why she wanted to pay more for the option of having her mortgage “open,” she replied, “Well, aren’t all variable-rate mortgages ‘open’?” I realized then that what was obvious to me isn’t necessarily so to everyone else. How many Canadians make the same mistake and end up paying a premium for a feature they’ll never take advantage of?
Most Canadians are not mortgage experts, and the various terms that bankers and brokers throw about can be confusing. Fixed, open, closed, variable – as if you’re supposed to understand everything and make a choice in five minutes on the biggest ticket item you’re likely to ever commit to.

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How are YOU Preparing for Higher Rates?

We’re certainly living in interesting times. In January, everyone was bracing for higher interest rates. The Bank of Canada had given us an artificial target of July before it would start to raise rates, and indeed it did.

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