Your questions: Should we opt for a fixed rate or variable rate mortgage?


Q. Is it true that fixed rate mortgages are the way to go right now for first-time buyers? My fiancé and I just got approved for a mortgage and thought it best to stick with a variable rate that would give us some flexibility. However, our friends just said they secured a five-year fixed rate of 2.45% on a loan-to-value rate of 75% with their lender, which was even better than the variable rates we considered.

. Over the past two years, most clients taking out new mortgages and switching mortgages have opted for medium-term fixed rates of three, four and five years, according to Affinity Advisors director Peter Gilbourne. In the past, customers would have had to pay a premium for the security and stability offered by fixed tariffs. But with rates now as low as 1.95% to 2.3%, there is much more incentive to choose a fixed rate mortgage over the often more expensive variable rates, Mr Gilbourne said.


Comments are closed.