Why Variable Rates Are Safer Than Fixed Rate Mortgages In 2021

Is a fixed rate mortgage really safer than a variable rate mortgage? Fixed vs variable mortgage in 2021? Is now a good time for a variable rate?

Today I discuss why variable rates, contrary to popular belief, are actually safer than fixed mortgage rates in Canada. It mostly has to do with the fact that fixed rates are just long term adjustable mortgages that reset every five years rather than as the Bank of Canada moves rates, and that exposes consumers to payment shock.

But the outperformance of variable rates can't be ignored either, nor can the penalty risk of five year fixed rates. All this adds up to variable rates actually being a much safer option for Canadians.

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To find out when you should lock in a variable rate mortgage watch this video -    • When to Lock in a Variable Rate Mortg...  

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of this video should not be considered a substitute for
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