RSS

Monthly Mortgage Update from Paul Macara

A simple guide to fixed, variable, and adjustable-rate mortgages

  

With all eyes on mortgage rates the past couple years, choosing the right product can feel overwhelming, especially with so many options available. 

Whether you’re buying your first home or looking to refinance, understanding the differences between fixed-rate, variable-rate, and adjustable-rate mortgages (ARMs) can make a big difference in your decision-making. 

Here’s a quick and easy guide to help you understand these options.

Fixed-rate mortgages: Stability and predictability

A fixed-rate mortgage remains a popular choice among borrowers. According to a 2024 consumer survey by Mortgage Professionals Canada, 75% of borrowers opted for a fixed mortgage rate. However, interest in variable rates grew toward the end of the year as the Bank of Canada introduced several rate cuts.

Fixed-rate mortgage are not directly impacted by the Bank of Canada policy rate decisions. The interest rate stays constant throughout the term, ensuring consistent monthly payments for principal and interest, which makes budgeting easier.

Who is it for?

Fixed-rate mortgages are ideal for homeowners who prefer stability and plan to stay in their home for at least the length of the term selected. It’s also a good choice if you expect interest rates to rise in the future.

Key benefits:

  • Predictable payments for the term of your mortgage

  • Protection against rising interest rates

Considerations:

  • The initial rate may be higher compared to variable or adjustable-rate mortgages

  • Typically higher prepayment penalties if you break your mortgage before the end of the term

  • Less flexibility if rates decrease during your term

Variable-rate mortgages: Savings with some risk

A variable-rate mortgage (VRM) offers an interest rate that fluctuates with the lender’s prime rate, which is influenced by the Bank of Canada’s policy rate. While your payments may remain fixed, the portion of your payment going toward interest versus principal can change over time as rates rise or fall.

Who is it for?

Variable-rate mortgages suit borrowers who are comfortable with some risk and believe rates may decrease—or stay low—over the term of the mortgage. It also suits individuals that may look at selling or refinancing before their term is up, as the penalties are more predictable than fixed rate mortgages.

Key benefits:

  • Historically lower interest rates compared to fixed-rate mortgages

  • Potential savings when rates drop

  • Predictable pre-payment penalties

Considerations:

  • Monthly payments may increase if rates rise

  • Requires a tolerance for unpredictability

Adjustable-rate mortgages: A blend of flexibility and risk

An adjustable-rate mortgage (ARM) isn’t offered by all lenders in Canada. Scotiabank and National Bank are among Canada’s Big 6 banks who do offer it, and a number of Mortgage Finance Companies do as well. With an ARM, both your interest rate and monthly payment fluctuate with changes to the lender’s prime rate. Unlike a VRM, your payment changes immediately, typically within 30 days, when prime shifts, which can lead to greater monthly cost swings.

Who is it for?

ARMs may appeal to borrowers who want lower initial rates and have the financial flexibility to manage changes in monthly payments. As with VRMs, it may suit individuals that may look at selling or refinancing before their term is up, as the penalties are more predictable than fixed rate mortgages.

Key benefits:

  • Typically offers lower starting rates than fixed or variable options

  • Opportunity to pay less during periods of lower interest rates

  • Predictable pre-payment penalties

Considerations:

  • Payments can increase significantly if prime rate rises quickly

  • Less predictable budgeting

Which mortgage type is right for you?

Choosing between these options comes down to your financial goals, risk tolerance, and how long you plan to stay in your home. A fixed-rate mortgage provides peace of mind, while a variable-rate mortgage offers savings potential with some uncertainty. 

Let’s find the right fit together

I’m here to help you weigh your options and choose the mortgage that works best for your unique situation. Whether you prioritize stability or are open to taking a calculated risk for potential savings, I’ll guide you every step of the way.

Reach out today to explore your options and make an informed decision about your mortgage.


Paul Macara
Mortgage Professional
(250) 857-4741 
paul@macaramortgages.com

Read

I have sold a property at 33 7583 Central Saanich Rd in Central Saanich

I have sold a property at 33 7583 Central Saanich Rd in Central Saanich on Feb 14, 2025. See details here

The current owners have lived in and loved this neat and tidy home for over 20 years. At almost 1000 square feet this 2 bedroom, 1 bath home is open, bright and feels very spacious. A natural gas fireplace adds to the cozy living room and easily heats the entire home. Outside enjoy morning coffee and evening bbq’s on the large south facing deck. A large shed is perfect for all your storage needs. You'll love the social aspect in this 55+ complex with a club house offering numerous activities including a guest suite for your visitors. Close to ferries, airport, all shopping and Victoria.

Read

New property listed in La Bear Mountain, Langford

I have listed a new property at 312 2000 Hannington Rd in Langford. See details here

Welcome to Unit 312 at 2000 Hannington Road, nestled in the heart of Bear Mountain. This modern 1-bedroom plus den and 1-bathroom condo offers an open-concept living with high-end finishes throughout. The spacious kitchen features stainless steel appliances and quartz countertops, flowing seamlessly into the bright living area, complete with large windows and stunning views. The primary bedroom is a cozy retreat, while the bathroom boasts contemporary fixtures. Enjoy the serenity of Bear Mountain from your private balcony or take advantage of the building's amenities. Located minutes from world-class golf, hiking, and dining, this condo is perfect for both outdoor enthusiasts and those seeking a relaxed, luxurious lifestyle. It’s a fantastic opportunity to own a slice of this vibrant community.

Read

I have sold a property at Strata Lot 2 West Coast Rd in Sooke

I have sold a property at Strata Lot 2 West Coast Rd in Sooke on Jan 31, 2023. See details here

West Coast road Estates is Vancouver Island’s newest development opportunity for families, adventure seekers, and retirees to experience the west coast lifestyle. Offering for sale 13 Bare Land strata lots ranging in size from 5-18 acres. Most lots have breathtaking views of the Pacific Ocean, Salish Sea and Olympic Mountains. Common asphalt rds within the development- each lot will have a drilled well & power available on the road. Bonus- each lot allows a detached suite up to 969sq.ft. Strata Lot 2 is 5.15 acres and offers road access to both the upper and lower portions of the lot. The land is flat and useable with nice ocean & mountain views. Live amongst nature on Canada’s West Coast. Located just a few minutes past Shirley Delicious Café, but before you pass Stoked Pizza. Surrounded by beautiful surfing beaches & world- class hiking. Hwy 14 upgrades are currently in progress and improved cellular service is coming to the area, allowing you to stay connected when you need to be.

Read

I have sold a property at 404 1258 Esquimalt Rd in Esquimalt

I have sold a property at 404 1258 Esquimalt Rd in Esquimalt on Dec 17, 2021. See details here

Bright top floor condo in a GREAT neighbourhood! This spacious 2 bdrm 1 bthrm condo is a fantastic offering for first-time home buyers, those looking to downsize, or investors. This modern design features an open living concept layout w/ 3 skylights, a natural gas fireplace & balcony! Enjoy a large primary bdrm w/ a walk-in closet & a generous secondary bdrm w/ ample closet space to use as is, or to repurpose. Other amazing features include in-unit laundry, underground parking spot, separate storage unit & the building has bike storage available. W/ a shopping plaza, café, restaurants, & community amenities all within walking distance, this location has LOTS to offer. Bus stops located across the street transit to major destinations, English & French Primary & Secondary schools are all within reach (SD61), making this a great spot for young families. Don’t miss out on this wonderful opportunity to make this condo yours. click the media icon for floor plans and CALL TODAY TO VIEW!

Read

I have sold a property at 204 810 Orono Ave in Langford

I have sold a property at 204 810 Orono Ave in Langford on Mar 18, 2022. See details here

Welcome to Pacific Trilogy, a modern new development located in the heart of Langford! This 6 Storey, 46 unit building is on track for occupancy March/April 2022. This Large North facing unit features 876 sq.ft of open living space w/ 2 separated bedrooms & 2 full bths. 9’ ceilings w/ large windows for an abundance of natural light & huge private & covered balcony. Kitchen incls Euro 2 tone cabinets w/ soft touch drawers & hinges covered w/quartz countertops throughout. Quality SS appliances incl. Fridge with ice, Convectional Oven, Microwave Rangehood, Dishwasher & front load Washer & Dryer! Secure bike storage & pet friendly building – No Weight Restrictions! 1 Secure Parking stall w/ gate entry, fob & video security & EV Car charging is available. Keep your strata costs low! Incld’s blinds/screens and a full 2-5-10 warranty! Rentals allowed! Just a few minutes’ walk to shopping centers, recreation facilities, walking trails and entertainment!

Read

I have sold a property at 401 3157 Tillicum Rd in Saanich

I have sold a property at 401 3157 Tillicum Rd in Saanich on Dec 15, 2021. See details here

Very bright and pet friendly corner unit with tons of windows. This home is a spacious two bedroom and two bath condo centrally located on a bus route, close to both theatres, rec. centre and is across the street from Tillicum Mall. You don’t get this kind of space with any of the newer buildings. A well laid out kitchen with double sink, window, dishwasher, an updated stove, large fridge and a full bank of cabinet drawers for ease of cooking. Master has a full ensuite with tub/shower, large closet, and a ton of square footage to accommodate all of your furniture. Second bedroom is conveniently separated and has a second full bathroom. For full media package including all photos, video, 3D virtual walkthrough, floorplan, etc….

Read

I have sold a property at 8 720 Russell Rd in Ladysmith

I have sold a property at 8 720 Russell Rd in Ladysmith on Jul 30, 2021. See details here

Amazing Ocean and Mountain views are yours in this Brand New 3193 sq. ft. home that is sure to impress. Located in a new subdivision of 9 lots. Quality built home with High Efficiency gas furnace and on demand hot water. The main floor is 1615 sq. ft. 3 beds, 2 baths including lovely ensuite. 9'0 ceilings, open and very large layout with 14'6 x 17'8" living room with gas fireplace, good size kitchen, quartz countertops, mix of wood floors and carpet. The home will be finished to the bottom of the stairs only. (see plans for dimensions Down). Quotes can be given to finish this of course. Down, (see plans) and continuing from the main floor upstairs you have 8'-0 ceilings, a large family room 14'8" x 19'5", 4 pce bath and one additional bedroom making it a total of 4 bedrooms 3 baths, PLUS a one-bedroom unfinished suite. Super location with 10 year new home warranty. NOTE: 0'0"x0'0" dimensions denotes unfinished.

Read

I have sold a property at 504 732 Broughton St in Victoria

I have sold a property at 504 732 Broughton St in Victoria on Sep 10, 2021. See details here

Don't miss this bright, south facing 2 bed, 2 bath condo at The SoMA; a mixed use sleek, six storey structure of concrete, glass and steel that allows short term/vacation rentals. Part of a very limited collection of suites, the thoughtfully laid out living space flows seamlessly onto an outdoor terrace taking full advantage of the urban views and south exposure. This two bedroom layout features separated bedrooms, two bathrooms including master ensuite, in floor radiant heating, stainless appliances, Quartz island, in-suite laundry and on-demand hot water. This unit has separate storage and a secure parking spot. Walk everywhere....restaurants, pubs, library, shopping.....the best of the city is right at your front door! Available Sept. 1!

Read

I have sold a property at 1317 Wilhelmina Way in Langford

I have sold a property at 1317 Wilhelmina Way in Langford on Oct 23, 2020. See details here

Absolutely Immaculate & everything you need! Tucked away on a quite street is this beautifully maintained & UPDATED home. The 3bdrm/2bath upper level offers mountain views, large living room w/wood burning FP, bright kitchen w/eating bar, access to the sun drenched deck from dining area. BONUS of a ground level 2bd/2ba INLAW SUITE ($1400/mo). UPDATES THROUGHOUT INCL: New flooring (laminate, tile, carpet); Freshly painted interior/new trim/new light fixtures, refaced fireplace surround, Updates to all baths (vanities, backsplash, Tiled tub surround, flooring); Vinyl windows, gas furnace; Recently re-landscaped entire yard...PRIVATE tiled patio w/excellent sun exposure, new cedar fence & feature entrance gate surrounding pet/kid friendly yard, Driveway expanded to double wide to fit 4 vehicles. Minutes to BELMONT MARKET SHOPPING, bus route,Galloping Goose trail. VIRTUAL TOUR & floorplan available SqFt Aprox

Read

I have sold a property at 415 515 Chatham St in Victoria

I have sold a property at 415 515 Chatham St in Victoria on Oct 21, 2021. See details here

This modern condo is located in Victoria's historic and vibrant Old Town neighborhood, just steps away from cafes, shopping, nightlife, and more! Built in 2020, Ironworks is a unique new building with high quality and distinctive finishes representing the historic character of the neighborhood. This 4th floor, one-bedroom unit has wall-to-wall windows, high ceilings and North-facing views of the city and mountains, as well as partial water views from the Juliet balcony. The unit includes in-suite laundry, a secure underground parking spot, guest parking, and a resident-only garden area on the second floor. Pets allowed and unrestricted rentals! Perfect for the first time home buyer or investor! As a bonus, the furniture could be available to purchase.

Read

I have sold a property at 18 6574 Baird Rd in Port Renfrew

I have sold a property at 18 6574 Baird Rd in Port Renfrew on Jan 15, 2022. See details here

The Wild and Wonderful West Coast cottage in Port Renfrew! This 1 bed 1 bath home sits in the pristine rainforest of the west coast. There is so much to love and discover here from hidden beaches and ancient forests to deep sea fishing and surfing. This open concept cottage is the perfect throw back to a simpler time. Designed to enjoy your wrap around deck from the bedroom and Kitchen/living room. Host a BBQ on your private patio or tell tales of adventures around the fire. A top of the property is a lovely sun soaked sitting area overlooking the home and forest. The complex is very friendly & quiet with trails that lead down to the ocean and to access to the new marina. Built for the west coast, this home has a metal roof and cedar shingle exterior and a new hot water tank. Sitting at the North end of the Juan de Fuca trail Renfrew is the next great get away destination. 2 hours from the BC ferries Nanaimo or Victoria. click the media icon for floor plans and CALL TODAY TO VIEW!

Read
Categories:   Co Hatley Park, Colwood Real Estate | Co Triangle, Colwood Real Estate | Co Wishart North, Colwood Real Estate | CS Hawthorne, Central Saanich Real Estate | CS Tanner, Central Saanich Real Estate | Du Ladysmith, Duncan Real Estate | Du Saltair, Duncan Real Estate | Du West Duncan, Duncan Real Estate | Es Esquimalt, Esquimalt Real Estate | Es Old Esquimalt, Esquimalt Real Estate | Es Rockheights, Esquimalt Real Estate | Hi Western Highlands, Highlands Real Estate | La Bear Mountain, Langford Real Estate | La Florence Lake, Langford Real Estate | La Glen Lake, Langford Real Estate | La Goldstream, Langford Real Estate | La Happy Valley, Langford Real Estate | La Langford Lake, Langford Real Estate | La Langford Proper, Langford Real Estate | La Luxton, Langford Real Estate | La Mill Hill, Langford Real Estate | La Walfred, Langford Real Estate | La Westhills, Langford Real Estate | ML Cobble Hill, Malahat & Area Real Estate | ML Mill Bay, Malahat & Area Real Estate | ML Shawnigan, Malahat & Area Real Estate | Na Extension, Nanaimo Real Estate | NS Dean Park, North Saanich Real Estate | NS Deep Cove, North Saanich Real Estate | NS Lands End, North Saanich Real Estate | OB South Oak Bay, Oak Bay Real Estate | PA Alberni Valley, Port Alberni Real Estate | SE Broadmead, Saanich East Real Estate | SE Cedar Hill, Saanich East Real Estate | SE Cordova Bay, Saanich East Real Estate | SE Gordon Head, Saanich East Real Estate | SE Lake Hill, Saanich East Real Estate | SE Mt Doug, Saanich East Real Estate | SE Quadra, Saanich East Real Estate | Si Sidney North-East, Sidney Real Estate | Si Sidney South-East, Sidney Real Estate | Sk Broomhill, Sooke Real Estate | Sk East Sooke, Sooke Real Estate | Sk John Muir, Sooke Real Estate | Sk Jordan River, Sooke Real Estate | Sk Port Renfrew, Sooke Real Estate | Sk Saseenos, Sooke Real Estate | Sk Sheringham Pnt, Sooke Real Estate | Sk Sooke Vill Core, Sooke Real Estate | Sk West Coast Rd, Sooke Real Estate | Sk Whiffin Spit, Sooke Real Estate | SW Gateway, Saanich West Real Estate | SW Marigold, Saanich West Real Estate | SW Tillicum, Saanich West Real Estate | Vi Central Park, Victoria Real Estate | Vi Downtown, Victoria Real Estate | Vi Fairfield West, Victoria Real Estate | Vi James Bay, Victoria Real Estate | Vi Jubilee, Victoria Real Estate | VR Six Mile, View Royal Real Estate | VW Victoria West, Victoria West Real Estate
MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.