Unlocking Savings: Why Ontario Homeowners Are Switching to Variable-Rate Mortgages

As mortgage rates continue to fluctuate, Ontario homeowners are increasingly drawn to the flexibility of variable-rate mortgages. With the Bank of Canada recently reducing rates by 50 basis points, dropping the benchmark rate to 3.75%, many are seizing this opportunity to switch from fixed-rate mortgages to take advantage of potential savings. Here’s what homeowners need to know.

Variable-Rate Benefits Amidst Rising Living Costs

Variable-rate mortgages allow homeowners to benefit from potential rate reductions, making them appealing for those looking to offset rising living expenses. With monthly mortgage payments stretching budgets thin, switching to a variable rate could reduce financial strain.

Factors to Consider Before Making the Switch

While variable rates offer flexibility, borrowers must evaluate the potential risks. Rate increases could result in higher monthly payments, so it’s important to have a strategy in place.

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