Mortgage advice for 2021: Fixed versus variable rate?

Mortgage rates are at an all-time low and Canadians will have to decide whether 2021 is the year to lock in a fixed rate, ride out the variable, pay down their debt, invest or simply save.

Complicating these decisions is the COVID-19 pandemic, which is the reason for the historically low rates to begin with. Canada’s economy isn’t expected to really recover until 2022, vaccination rollout permitting. So 2021 is going to be as much, if not more, of a financial challenge.

According to a recent Ipsos study, four in 10 Canadians are “struggling” at best when it comes to their financial health. Among those people, almost one in five feel they are “sinking” financially. Meanwhile, only one-third of Canadians say they are “thriving.”

Original Article Source Credits:   Now Toronto , https://nowtoronto.com/

Article Written By:   Radheyan Simonpillai

Original Article Posted on:  Jan 9, 2021

Link to Original Article:  https://nowtoronto.com/lifestyle/finance/mortgage-fixed-variable-rate-2021-canada-savings