For GTA homebuyers navigating an affordability-squeezed market, the choice between fixed and variable mortgage rates has become a critical pivot point. New data from the DLCG Mortgage Group reveals a significant shift: 56.8 per cent of prime applicants are now opting for floating-rate mortgages, a sharp climb from just 35.9 per cent in March.
This trend highlights a widening gap between independent mortgage brokers and traditional banks. While banks often steer clients toward fixed products, brokers are increasingly leveraging variable rates to help borrowers navigate the government’s stress test. Because floating rates are currently running 55 basis points below fixed, they offer a vital boost to purchasing power. Furthermore, brokers emphasize the lower break fees associated with variable products, offering a defensive strategy against the steep interest-rate-differential (IRD) penalties common at major banks. For a deeper dive into these market dynamics, read the full analysis at financialpost.com.
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