Name: Home Buying 101: Should you go with a fixed or variable mortgage rate?
Uploaded: 2020-03-04T20:00:35.000Z
Duration: 1 min 34 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

The second conditional

If I was getting a mortgage right away, I would probably get a variable, because it sounds flexible.

I saw the rates fluctuating quite a bit and I didn't want to commit to a variable mortgage for that reason.

Adverbs of degree

The interest rate was going up, so there was quite a lot built in in terms of implied volatility.

I was aware of the benefits of the variable mortgages,

but I just felt it was too volatile for my personal situation.

Whether you're renewing your mortgage or buying your first home,

your mortgage will be one of the biggest financial decisions you make.

Feeling confident you're making the right choice about the type of interest rate means

you'll be more comfortable affording your home and your life.

If you're concerned interest rates could rise in the future, then a fixed rate mortgage

may be a better option for you because your rate won't change during the term.

However, if you're prepared to manage the possible interest rate increases and what

that means in terms of how much principal you're repaying each month,

a variable rate mortgage could help save you money in the long term

because more of your payment would go towards principal.

This will, of course, depend on your lender and their conditions.

And remember, if you choose a variable rate mortgage and rates start to go higher

than you're comfortable with, many financial institutions, including TD, offer the option to lock into a fixed rate.

Before deciding which rate is right for you, we recommend talking to a TD mortgage specialist.