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The Pros and Cons of a Fixed-Rate Loan

UPDATE – As of November 2021, a number of lenders are increasing their fixed rates across various terms between 1 and 5 years. If you are thinking of fixing your loan, make sure you speak with your broker about how these recent changes may impact you.

When purchasing a property, refinancing or just renegotiating with your current lender, borrowers can generally decide between fixed-interest loans that maintain the same interest rate over a specific period of time, or variable-rate loans that charge interest according to market rate fluctuations. With interest rates at an all-time low, and many lender’s fixed rates significantly lower than their variable options, refinancing to a fixed rate is a very attractive option at the moment. While none of us know what the future holds, we can look at the facts and make an educated decision. Here are the ins and outs of fixed-rate loans.

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