The Dance with Economic Indicators
Variable rate mortgages are not for the faint of heart. To keep up with the ever-changing interest rates, you need to become an amateur economist overnight. In other words, timing rates is like trying to time the stock market.
Suddenly, the words “Bank of Canada,” “prime rate,” and “economic indicators” become part of your everyday vocabulary.
You’ll find yourself scanning news articles and analyzing graphs like a detective hot on the trail of the next rate hike or drop.
It’s a constant dance with the economic forces that govern our financial lives.
Sleepless Nights and Rate Anxiety
Remember that time you binge-watched a suspenseful TV series, and you couldn’t sleep because you just had to know what happens next?
Well, owning a variable rate mortgage can give you similar sleepless nights. Each time you hear about economic uncertainty or whispers of interest rate changes, your heart skips a beat.
Will your mortgage payments skyrocket upwards? It’s like a never-ending game of mortgage roulette, and your emotions become the ball spinning on the wheel.
One of the main questions I ask clients considering a variable mortgage is: Will you be able to sleep at night if rates rise?
A Love Story with a Safety Net
Despite the thrill and uncertainty, variable rate mortgages aren’t as reckless as they might seem.
Many of Huber Mortgage clients have calculated the savings they were receiving from variable vs. the fixed rate at the time, put the difference in a savings account and made lump sum payments on a regular basis. Let Huber Mortgage show you how – Call today!
These clients have opted to use the best tools to drop your mortgage balance and save money – pre-payment privileges. Learn how they work HERE.
And there you have it, dear readers, our love affair with variable rate mortgages laid bare.
It’s a rollercoaster ride filled with excitement, anxiety, and a touch of adventure. The allure of lower initial rates and the thrill of dancing with economic indicators make these mortgages a popular choice for many Canadians. Not to mention a good dose of potential savings (except in 2023 🙂
But remember, like any passionate relationship, it’s not without its risks. So, if you’re willing to embrace the uncertainty and keep a close eye on those interest rates, hop on board and enjoy the wild ride of variable rate mortgages.
After all, life is all about taking chances, eh?
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE