
- The length of your mortgage term (higher length in the term usually have higher rates)
- Their current Prime and Posted Interest Rate
- If you qualify for a discounted rate
- Type of interest you choose (fixed, variable, or combination)
- Your credit history
- If you’re Self Employed/ Employee
- Your payments stay the same over the term of your mortgage
- You want to know in advance how much principal you’ll pay by the end of the term
- Keep your interest rate the same because you think market interest rates will go up
A Variable Mortgage Rate can increase and decrease during the length of your term. This means that when you choose a Variable Rate Mortgage, your interest rate may be lower than if you selected a Fixed rate. This type of mortgage may be best for you if you can accommodate the following:
- Your interest rate changing
- Your monthly mortgage payments potentially increasing or decreasing
In a Variable Rate Mortgage (commonly referred to as AVRM) the interest rate can go up, meaning more of your monthly payment goes towards the interest and less to the principal. If rates go down, more of your payment goes to the principal, which means you can pay the mortgage off faster.
The best advice is the one that comes from your Mortgage Broker because they can analyze your needs and start underwriting your information. With their expert advice, together you can create a perfectly “tailored-to-you” plan.
If any of the topics mentioned sound like something you may be interested in, please reach out and one of our Senior Broker Partners would be more than happy to assess your unique situation and give you the best advice. At GLM Mortgage Group, we are with our clients for the entire journey. From the beginning, we can identify client needs, any possible roadblocks, and give a variety of tailored solutions. If any of the topics mentioned sound like something you may be interested in, please reach out and one of our Senior Broker Partners would be more than happy to assess your unique situation and give you the best advice. At GLM Mortgage Group, we are with our clients for the entire journey. From the beginning, we can identify client needs, any possible roadblocks, and give a variety of tailored solutions.