What are the potential risks of choosing a variable-rate mortgage?

Author: Boychuk Mortgage Group |

One potential risk of choosing a variable-rate mortgage is interest rate volatility. Since interest rates can fluctuate, your monthly mortgage payments may increase if they rise significantly during the mortgage term. This variability can make budgeting more challenging and may impact your financial stability if you are not prepared for potential payment increases. Additionally, if you plan to keep the property for a long time, rising interest rates could result in higher overall interest costs compared to a fixed-rate mortgage.