WESTOBA CREDIT UNION
HOME BUYERS CHOOSE PREDICTABILITY AND STABILITY OVER BEST RATE For many of us, the purchase of a home will be the single most significant investment we make in our lives and along with the many decisions that come with buy- ing a home, one of the first will be deciding whether to choose a fixed or variable rate mortgage. In a recent online Facebook poll that Westoba con- ducted, 82 per cent of respondents told us they pre- fer fixed-rate mortgages over variable rate mortgages. These results are in line with industry averages. As the name suggests, with a fixed rate, your mortgage rate and payments remain the same over the term of your mortgage agreement. With a variable rate mort- gage, your rate and payments will change based on the prime lending rate set by your bank or credit union. “The first question I ask members is whether they’re comfortable with the rate going up,” says Financial Consultant Tristan Vera, located at Westoba’s Portage Avenue location in Westwood. “Depending on your stage in life, a change in your monthly payments can add unnecessary stress. For example, a young couple without children may opt for a variable rate and regret it later when they have children and incur new expenses.”
MORTGAGE DESCRIPTION PROS
CONS
FIXED
Interest rate and payments are fixed.
Easy to budget for and reduces uncertainty.
If rates drop, you may pay more for the security of fixed payments.
VARIABLE
Fluctuates with changes in prime interest rate.
Can be less expensive if rates remain low/stable.
Must be able to tolerate financial uncertainty should rates increase during the term.
Call 1-877-WESTOBA today and let us guide you through the mortgage process.
Thinking of buying a new home? 3.25% * Mortgage rates as low as westoba.com | 1-877-WESTOBA
*Rates subject to change. Some conditions may apply.
Parade of Homes Spring 2019 33
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