Should I get a fixed or variable rate as a first-time buyer?
Quick Answer
Short answer: Most new buyers choose a 5-year fixed for payment certainty; variable suits those with flexibility and savings buffers.
Detailed Explanation
If your budget is tight, locking a fixed rate eliminates surprise increases during the crucial first five years of ownership. Variable offers lower penalties for early sale or refinance and can save money if rates fall.
A hybrid or 'split' mortgage combines both worlds.
- Stress test is applied at +2% even on variable
- Early renewals sometimes waive penalties on fixed
- Ask about portability if you may move within 5 years
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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