Best 5-Year Variable Mortgage Rates in New Brunswick

When sorting out home financing in New Brunswick, it’s essential to grasp how variable mortgage rates work, especially if you’re eyeing a 5-year term.

Variable mortgage rates do what they say: they can change during your mortgage term.

Unlike fixed rates, which stay the same, variable rates fluctuate based on changes in the market’s interest rates, which are often linked to the lender’s prime rate.

Think of your mortgage payments like a boat on the ocean. With a fixed rate, your boat sails steadily on a predictable path.

But with a variable rate, your boat adjusts to the winds of market interest rates, which can change because of economic factors, central bank policies, and other financial signs.

This flexibility can be good when rates go down, as your mortgage payments might drop, potentially saving you a lot of money over your mortgage term.

The big difference between variable and fixed mortgage rates is how they react to market conditions.

While a fixed rate gives you the comfort of knowing what to expect, a variable rate benefits you from lower interest rates.