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Ontario mortgage rates can vary greatly depending on the type of mortgage. There are two main types of mortgages, fixed and variable, that homebuyers need to consider when shopping for a mortgage. Fixed rate mortgages have the same interest rate throughout the duration of the loan, while variable rate mortgages can fluctuate over time. Understanding these differences is crucial in making an informed decision when deciding on a mortgage in Ontario.

Fixed mortgage rates provide a sense of stability for home buyers, protecting them from fluctuating interest rate markets. These loan terms are set for either 25 or 30 years at an agreed upon interest rate. This means that the borrower's monthly payments will remain the same throughout the life of the loan, regardless of any changes in market rates.

A variable mortgage rate is one that is not fixed and can change throughout the life of your mortgage. It is typically linked to an interest rate benchmark such as the prime rate, and its amount will fluctuate in accordance with any changes to this benchmark. This means that while variable rates may start out lower than a fixed-rate mortgage, they can also increase over time, leading to potentially higher monthly payments for borrowers.

Variable mortgage rates can offer savings for borrowers in the form of lower interest rates compared to fixed rate mortgages, resulting in lower monthly payments. However, there is a risk that if market interest rates increase, the borrower’s monthly payments could also increase significantly.


Miko Nalepa

Sales Representative
Right at Home Realty Inc., Brokerage
480 Eglinton Ave W
Mississauga, Ontario

Phone Numbers

Direct: 416-587-6172


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