Fixed vs. Variable Rate Mortgages: Which Is Better for You at BCU Financial?
Are you choosing a home and looking for the best way to finance it? If you’re like most new buyers in Canada and not quite sure what the difference is between a fixed rate mortgage BCU and a variable rate mortgage, this article is for you. On www.bcufinancial.com, you’ll find both options with examples, rates, and tips. But here, we’ll briefly explain the basics without complicated terms.
What Is a Variable and Fixed Rate Mortgage BCU?
Fixed rate mortgage BCU means you know exactly how much you’ll pay each month right from the start. The percentage stays constant for the full period — for instance, 4 years or 6 years. It’s convenient because you can plan your budget with no surprises.
Variable rate mortgage BCU means the rate can change. If market interest drops — your monthly amount decreases. If they rise — your monthly amount increases. It’s a bit more risky, but there’s a chance to save money.
To see how fixed and variable home loans aren’t the same, here’s a simple example:
- Ann is buying her first home in Mississauga. She chose a fixed mortgage with Buduchnist Credit Union. Her payment is 1,500 CAD per month, and it will stay the same for 5 years. She’s confident nothing will change.
- Alex works in IT in Toronto. He went with a variable mortgage. His initial payment was 1,450 CAD, but a year later, the rate dropped, and now he pays 1,370 CAD. It might go lower — or higher. Ihor is okay with that.
Which Mortgage Is Better to Choose?
Choosing the right mortgage matters. Stick to fixed if stability matters to you, you don’t like surprises, and you prefer to plan your budget. Choose a variable if you’re open to changes, hoping for lower rates, and want to save money. When choosing the right mortgage, always think first about what works best for you.
How to Get a Mortgage Rate at BCU Financial?
Getting a fixed or variable rate mortgage BCU is simple. First, check our offers on the website. Then call us or visit a BCU Financial branch. Our advisors will help you:
- Take a look at your credit and see how much cash you can throw in.
- Choose the best mortgage option for your needs.
- Get a pre-approval — that means you’ll know how much you can borrow.
- Sign the documents and start the home-buying process.
At BCU Financial, we offer different mortgage options, and every client can count on support in Ukrainian or English.
Conclusion
A mortgage isn’t scary when you understand the basics. Visit our website, check the rates, or simply book an appointment. Buduchnist starts with the right choice.