Fixed Vs Variable Rate

The article discusses the debate between fixed-rate and variable-rate mortgages. A fixed-rate mortgage is a loan at a fixed rate and for a fixed term, while a variable-rate mortgage is based on an agreed discount from a lender's prime rate and can fluctuate during the term of the loan. The article suggests that it depends on several factors, such as the borrower's situation, when choosing one type of mortgage over the other. The article provides an example of how the two types of mortgages differ in terms of payments. The article concludes that a fixed-rate mortgage can be a good strategy to defend equity growth, especially in an environment where rates are likely to rise.