Variable or Fixed? What type of client are you?

Conservative, Balanced, or Risk Tolerant. Which type are do you fit into?

Conservative

• Prefer certainty on mortgage
• Meet new qualifying rules
• First Time Home Buyer
• Limited budget for payment increase
• Minimal equity in property
• Need to know exact monthly payment, interest rate & interest cost & principal balance outstanding at maturity
• Concerned with rate increase
• Will pay higher rate for long term mortgage stability
• No plans to sell in next 5 years

** a candidate for 4 - 7 years fixed rate

Balanced

• Prefer best of both worlds: variable and fixed rates
• Some equity in property
• Monthly budget not stressed
• Could tolerate fluctuation on some portion of mortgage: monthly payment, interest rate, & interest costs
• May sell within 3 years
• Short term plans with property

***Candidate for short term fixed rates, variable rate with fixed rate conversion option, Hybrid/split mortgage, Fixed rates of 1 - 3 years

Risk Tolerant

• Prefer lowest market rate
• Could tolerate interest rate fluctuation
• Monthly budget not stressed
• Prepared for potential monthly payment increase
• Understands long term savings with variable over fixed rate
• May sell within 1 year - Short term plans require mortgage flexibility
• Rate instability for potential higher interest cost savings

***Candidate for variable closed or open, could convert to fixed rate anytime
*** Variable rate mortgage or short term fixed rate 6 mos - 1 year

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