The right conversation includes your budget, plans and tolerance for uncertainty. A prediction about rates cannot answer those questions for you.
1. Ask how the payment behaves
For each proposal, ask what changes when rates change: the payment, the amount going toward principal, or both. Request a written explanation of any trigger provisions rather than assuming all variable-rate mortgages operate the same way.
2. Stress-test your own comfort level
Use the calculator to compare several illustrative rates, clearly labelled as scenarios rather than forecasts. Write down what payment would force you to cut essential spending. Keep an emergency reserve in the discussion.
3. Include the cost of changing plans
Ask about early payout, conversion options, portability and additional-payment privileges. Compare those features against your expected move or other life changes during the term, not just the initial rate.
Questions to bring to our conversation
- What changes in this product if rates rise?
- What flexibility would I lose or gain?
- What would it cost to change the mortgage before maturity?
Further reading: FCAC: Interest on mortgages. General information; lender requirements and individual circumstances vary.