What is the best variable???

The question of the day, "so what's your best variable rate?". It's a valid question, but it isn't easy to answer.

Really, it depends on your definition of "best". If you mean cheapest, as in the lowest interest rate out there, I have seen it as low as 2.05%. But we all know that you get what you pay for.

When shopping for a mortgage remember to make informed decisions. This is one decision that will cost you thousands over the next five years, so it is worth the time and effort to educate yourself on the options.

Yes, let's face it, the bottom line is MONEY. But just because a mortgage product has a low rate doesn't means that it will cost you less in the long run. There are other factors to consider when deciding which option to take.

One issue to think about when choosing your mortgage is "portability". Even though you may get a good rate, you need to know if the mortgage can be transferred to another property OR to another lender down the road. Can it be done easily and without penalties or legal fees?

Another point to consider with variable mortgages is what interest rate will you get if you choose to lock in to a fixed term . For example, if you take a varaible mortgage today while rates are low but decide it is too risky as rates start to climb in the future, you have the ability to lock in to a fixed rate contract. However, some banks will NOT offer you the best fixed rate at that time. They already have your business, so why would they give you the best discount. You could end up paying 1.5% more than needed.

Another catch to watch out for are the fees involved with breaking the mortgage contract. If for any reason you want to end your mortgage early some lenders do charge more than others. Just something to watch out for.

The list goes on and on. This is why your knowledgable mortgage broker can help you determine which mortgage product is best for you. A variable mortgage is a great choice, but let's make educated decisions and realize that it's not always about the interest rate.