The Differences Between Fixed And Variable Mortgage - Best Mortgage Rates

With the different types of mortgages rates, it’s important to educate yourself on the characteristics of each if you are looking to purchase a house.

Fixed-rate Mortgages With RBC Royal Bank

  • RBC variable mortgage rates

RBC Royal Bank offers great rates that will bring you peace of mind when you are considering fixed or variable mortgages. A fixed-rate mortgage is one where the interest rate is locked in place and will stay that way or the duration of the term. You won’t have to worry about interest rate fluctuations in the future throughout the whole term.

What you’ll know when choosing fixed-rate mortgages:

  • The amount of your interest rate and mortgage payment amount.
  • What amount of your payment will be going towards interest and principal?
  • How long it will take you to pay off your mortgage.
  • Take a look at current mortgage rates.

Guaranteed Pre-approval And Locked-In Interest Rate

After being pre-approved for a fixed-rate mortgage, the rate that was quoted will be guaranteed for four months, even in the case that the rates rise. But if the rates do down, then you will get the lowest rate that comes into effect for the entire term.

Variable Rate Mortgages With Rbc Royal Bank

With a variable-rate mortgage from RBC Royal Bank, you can have the opportunity to save money on your mortgage, even if the interest rates go up or down. Mortgage payments in variable-rate mortgages stay the same for the term if the rates increase or decrease. So if the rates do end up going down, then more of your payment is applied to reduce the principal. If the rates end up increasing, then a bigger chunk of the payment is applied towards interest.

Characteristics of variable-rate mortgages:

  • It provides the lowest mortgage rates available.
  • Saving thousands of dollars for interest payments throughout the term of the mortgage.
  • It provides a greater ability to budget because your monthly payments will remain the same.
  • See the current mortgage rates.

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