Each situation is unique.
To ensure you make the most informed financial decision, it's essential to consult with a mortgage broker. Their expertise allows them to provide an objective analysis of your situation and offer tailored recommendations. This is preferable to making decisions based on assumptions or the advice of others.
A broker will take the time to discuss your needs, lifestyle, and personal and professional goals. They will analyze your assets and liabilities to create a personalized financial plan. You'll have a clear understanding of your financial situation. In addition to guiding you through the process, they will ensure that your investment strategy aligns with your risk tolerance. This is a crucial step in reducing financial stress.
Fixed or variable rate mortgage: Which one should you choose?
There's no magic formula in finance. However, we know that inflation has a greater impact on variable rates than fixed rates. Shop around for interest rates in advance and take the time to negotiate, armed with the right information.
Fixed rate
The rate remains the same throughout the term. It varies only when the mortgage is renewed. This is convenient if you want stable payments.
Variable rate
The variable rate increases or decreases according to fluctuations in the prime rates of banking institutions. If you have a good risk tolerance and want to take advantage of rate decreases, this is the right choice for you.
Tips for preparing for rising interest rates
1—Reduce your debt
It's important to list all of your variable-rate debts and pay off those with the highest interest rates first.
2— Revise your budget
Review your budget and adjust it based on your future mortgage payment. The cost of living has never been higher, so it's important to track all your income and expenses to make the necessary adjustments.
3— Reduce your amortization term
If you can, consider increasing the frequency of your mortgage payments to pay off your mortgage faster.
4— Renegotiate your mortgage
For those with variable-rate mortgages, locking in a fixed rate before interest rates climb could be a prudent financial move. By securing a fixed rate, you can protect yourself from future rate fluctuations and enjoy the peace of mind that comes with a stable mortgage payment.
5— Plan your buying
Before buying a home, it's important to pay off high-interest debts like credit cards and car loans. A larger down payment will lower your monthly mortgage payments and save you money on interest in the long run.
Partnership with SimplAssur : mortgage brokerage firm
To provide an even more personalized and seamless experience, our clients will benefit from a preferential group rate on insurance premiums and many other advantages.
With SimplAssur, Proprio Direct becomes the only real estate banner in Quebec to offer its clients a turnkey network of experts, simplifying the entire process from buying or selling their property to home insurance.
What are the benefits for you?
- Exclusive preferential rates for our Proprio Direct clients.
- Customized home insurance solutions designed to fit your unique requirements.
- Simplified claim filing and management processes for your convenience
- Expertise and advice for all your insurance needs.
- Access to over 15 insurance companies and products.
- A turnkey service
To benefit from our partnership, contact your Proprio Direct real estate broker.
