It can be hard to choose the right mortgage. First, you need to figure out which mortgage is best for you.
Fixed-rate mortgages are good for people who want to know exactly how much they will have to pay each month. These mortgages have a fixed price for a certain amount of time, which can be anywhere from 1 year to 5 years.
A variable mortgage is exactly what it sounds like: a mortgage with a rate that changes with the base rate. So, if the base lending rate goes up, so does your mortgage rate. On the other hand, if the base lending rate goes down, so does your mortgage payment, which is a good thing. This is not for everyone, because there is some risk involved. (This was true in the late 1980s, when rates went up and house prices went down.)
You might also want to think about a mortgage that you pay back or one that you only pay interest on.
The only difference is that the second one only pays the interest. This means that your monthly payments will be less, but you will still have the capital to pay off at the end of the mortgage. A repayment mortgage, on the other hand, will cost a bit more, but at least you'll be paying off both the principal and the interest, which means that your mortgage balance will go down over time.
When you've decided on the type of mortgage that fits your lifestyle, don't be afraid to shop around while you're still bound by a contract. Usually, you have a certain amount of time in which you can negotiate a better rate or switch to a cheaper lender.
In today's competitive market, I would always recommend that you shop around. There are many different lenders with different rates, and you need to find the right one for your budget and way of life.
