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Variable vs. Fixed Mortgages – Finding the Best Option for You (#012)

Do you know what mortgage option is best for you? If you don’t know the difference between different mortgage types, then choosing the wrong one for a new home in White Rock or South Surrey could be a big mistake.

The type of mortgage you choose affects everything from your budget to how the rates could affect it in the future. Can you see how the wrong mortgage could wreak havoc on your finances?

If you’re interested in learning more about fixed versus variable rate mortgages, then you’ll want to invest 20 minutes to listen to this edition of The Mortgage Newscast where your host Erik Reynolds interviews Jared Dreyer, president of Dreyer Group Mortgages, about choosing the right mortgage for you.

Buying a house is frustrating when you don’t know about your mortgage options, or how they could change in the future. The Vancouver Sun* reported that a strong economy and immigration will ensure stable mortgage prices on the Semiahmoo Peninsula.

This interview is a chance to learn more about variable versus fixed mortgages, and how to know which is the best option based on your status and needs.

How Variable and Fixed Mortgages Differ

The episode kicks off with Jared defining the term “fixed rate mortgage”. He also explains how a fixed rate affects payments, your budget, and how close it requires you to watch rates.

Next Jared defines the term “variable rate mortgage”. He talks about how this type of mortgage compares to a fixed rate, and what options you have if you find this rate does not work out.

If you begin the house buying process without knowing about the different rates, then you could make a choice that you regret later.

What You Need to Qualify for Fixed vs. Variable Mortgages

Then Jared segues over to what you need to qualify, after you determine what mortgage option is best for you. During the podcast he answers these and other questions:

  • Do rules by the OSFI affect whether I’ll qualify?
  • Do I have to qualify on the Bank of Canada rate?
  • How will rate increase affect my budget?

Now ask yourself two questions: Am I ready to buy a home in South Surrey or White Rock? Do I meet the qualifications for the best type of mortgage for me?

If you answered no to either or both of these questions, then it’s time to talk to a mortgage professional about what options are available to you.

Which Rate Uses a Principal Reduction Strategy?

After a short break, Jared returns to discuss which type of rate requires use of a principal reduction strategy, and the types of which home buyers most benefit from using it.

Depending on the type of mortgage you choose, being uneducated means leaving yourself at risk for financial pitfalls. Having a mortgage professional on your side can help.

Home buyers who use a mortgage professional have a higher chance of selecting the best mortgage for their situation. Why aren’t you setting up an appointment for a consultation?

The episode wraps up with Jared offering some final thoughts about the topic of variable versus fixed mortgages.

Are You Ready to See if You Qualify?

Do you feel ready to buy a home in White Rock or South Surrey? Do you want to know more about what mortgage option is best for you to avoid making a bad choice?

Listen to the entire podcast now. If you have questions or comments about this topic, then please share them in the comments area below. We look forward to discussing your feedback.

After you finish listening to this informative podcast, please contact Dreyer Group Mortgage Brokers at 1.800.687.9020 or apply with us using our 30 Second Application. We look forward to hearing from you!

30 Second Mortgage Application:

Dreyer Group Mortgage Brokers
#308 – 15252
32nd Avenue Surrey, BC
V3S 0R7

Phone #: (604) 536-3802

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Twitter: @JaredDreyer