Introduction:
Choosing between fixed and variable mortgage rates is one of the most important decisions in your loan journey. Understanding the differences can help you choose what’s right for your financial situation and risk tolerance.
Fixed Rate Mortgage:
- The interest rate stays the same throughout the loan term.
- Ideal for buyers who prefer predictability in monthly payments.
- Best when market rates are expected to rise or stay high.
Variable (or Floating) Rate Mortgage:
- The rate fluctuates based on market conditions.
- Usually starts lower than fixed rates but carries risk if rates rise.
- Suitable for those who can handle payment changes or plan to sell/refinance soon.
Things to Consider:
- Your income stability
- Loan duration
- Economic forecasts
- Risk appetite
- Break penalties or refinancing flexibility
Conclusion:
There’s no one-size-fits-all answer. At KSquare, we take time to understand your unique situation and guide you to the option that supports your goals—now and in the future.
