Fixed rate versus variable rate To understand the variation in - TopicsExpress

Fixed rate versus variable rate To understand the variation in rates, one must know the factors that influence them. Fixed rate: is based on the cost of Canada Savings Bonds Variable-rate: is linked the bank’s prime rate, which in turn depends on the Director of the Bank of Canada rate. Currently, the central bank of the United States sees reduce economic incentives by injecting less liquidity in their economies. This has the effect of increasing bond yields, therefore, at the same time, push the fixed rate on the rise! The Director of the Bank of Canada rate has meanwhile suffered no increase since August 8, 2010. It is currently at 1%. So do not think to follow rate changes only by the director of the Bank of Canada rate, the Canadian and global economic policies greatly influence the evolution of our interest rates. Contacting a HYPOTHECA mortgage broker is making the right choice for my future!

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