With a fixed-rate mortgage interest is about a percentage point higher than with a variable rate. However with a variable rate your mortgage rate will fluctuate according to overall interest rates. Rising rates will mean either a higher monthly payment, or the same payment but with a larger share going to paying interest. Lenders give higher rates to borrowers who are renewing than to new customers. So switching lenders at renewal time can be beneficial. Although switching lenders now also means passing the stress test. The stress test requires you to qualify for a rate that is higher than the one you’re being offered. If necessary you can try to find someone to co-sign. A co-signer means it will be a “refinance”, meaning it will be an uninsured mortgage. You’ll need to have at least 20 percent equity in the property to get an uninsured refinance. #mortgage #renewal #rates
