Fixed or Variable ?
The Vancouver Sun recently ran an article about whether first time home buyers should take fixed or variable. The answer from their experts in the article was for certain fixed rate?
I wonder if the first time home buyers who took variable rate mortgages in the last few years would agree with these experts?
For the record I think it is first of all very difficult to make such generalizations that all first time home buyers are strapped and need security.
But even those that are could set their payments as if they did take a five year or longer rate, to ensure payment stability as recommended in the article, and work with a mortgage broker who will watch things for you and advise you when you should lock in.
With variable rates for certain being low and lower for the balance of this year, and quite possibly for some time after this year, coupled with high fixed rate spreads which should shrink once lenders have more confidence in the money system variable is likely the best option.
