Quizzes / Rates & Terms

What’s Your “Rate” Personality?

Fixed or Variable Rate? Take the quiz now!

Grab a piece of paper and write down A or B, then count them to find out your Rate Personality!

Fixed or Variable Quiz

1. Do you have a strict budget that you need to stick to?

a)    No

b)   Yes

2. Do you have savings in the bank?

a)    Yes

b)   No

3. Do you plan on keeping the property for longer than 3 years?

a)    No

b)   Yes

4. Do you value payment stability over interest savings?

a)    No

b)   Yes

5. Are you always keeping your eye out for a lower mortgage rate?

a)    Yes

b)   No

6. Is qualifying for the highest mortgage amount possible important for you?

a)    No

b)   Yes

7. Are you the type to prepare in advance for worst-case scenario? Or are you a last minute planner?

a)    Plan ahead

b)   Last Minute

8. Have you mapped out your financial goals?

a)    Yes

b)    No

9. Do you plan on using your pre-payment privileges or making the mortgage payment only?

a)   I’m going to pre-pay

b)   Mortgage payment only

10.  Are you planning on making a big life change within the next 5 years, such as a job change, pregnancy, post-secondary or retirement?

a)    No

b)   Yes

11. What is more important to you?

a)    Paying off your mortgage faster

b)   Maximizing monthly cash-flow right now

12. Do you have experience with fluctuating payments like credit card or line of credit payments?

a)    Yes

b)   No

Mostly A’s:  Versatile Variable

Variable rate mortgages usually make up in interest savings what they lack in payment security.  You are prepared for the risk of fluctuating payments as you have a savings cushion to fallback on. You’re confident in your ability to budget effectively and you’re moving in a forward direction towards your financial goals and paying off your mortgage faster. That is why the versatility provided by a variable rate mortgage and potential for interest savings are attractive to you. Do note all variable rate mortgages are not created equal with each of the lenders so do be aware of all of the fine print. It’s important to monitor the prime rate as your mortgage balance could actually increase with some lenders if payments made are not covering all of the interest costs.

Mostly B’s:  Faithful Fixed

Fixed rates are the most reliable of the bunch; you know exactly what you’re paying for the entire length of your term. Fixed rates may not be as low as their variable counterpart, however, the fixed rate compensates by having a mortgage payment that does not fluctuate. Maximizing your borrowing power is important to you and a fixed rate allows you to qualify for the most you can. This not only makes a fixed rate mortgage ideal for the first time homebuyer, but also for the budget conscious borrower who wants to be certain of their monthly living costs.

Even A’s & B’s: Comfortable Combo

You have found a happy medium with a combo rate mortgage as you like to have the best of both worlds when it comes to your “rate” personality. A combo mortgage combines both a variable rate mortgage portion and a fixed rate mortgage portion, so you can take advantage of both payment security and interest savings.

The purpose of this quiz is just to give you an idea of what kind of rate may be right for you. I recommend speaking to an experience Mortgage Broker you trust about your specific financial situation before making any mortgage rate decisions.

If you are looking for a Mortgage Professional with Personality, contact the MortgageGirls at 780.433.8412 or email info@mortgagegirl.ca. Stay in the loop by following us on Twitter @Mortgagegirlca.

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