All reverse mortgages have variable rates that are tied to a financial index and will vary according to market conditions.

A variable rate is a good option if you want to repay more than your minimum repayment requirement to reduce the term of your loan. It offers you flexibility, like redraw, the ability to switch to a fixed rate at any time (from a standard variable rate at no cost), the option to switch between fortnightly and monthly repayments or increase your repayments when you can afford to. On the other hand, variable interest rates can move up or down at any time.

You can switch from a standard variable rate to a fixed one, at no cost or split into part-fixed and part-variable at any time (not available on a basic variable rate). Switching from a fixed to variable rate is not so simple. Costs will apply if you break your fixed contract before the end of the fixed term. These costs will depend on current market rates, your loan balance and the portion of the fixed term remaining at the time you wish to switch. Call us for more information.

One of the most common questions a Certified Loan Broker answers is, “should I choose a fixed or adjustable rate mortgage (ARM)?” The answer depends on many different factors including your income at the time of qualifying, the lender you are working with, current market conditions and how long you plan to stay in the house. Lets talk about your income first. Many first time buyers who are in the beginning stages of their careers will choose an adjustable rate over a fixed rate.

Unlike many banks and other financial institutions, interest rates are fixed and as low as 7.99 percent.

With a fixed rate loan/line, the interest rate will not change during the term of the loan. With a variable rate, the interest rate will move up or down, according to a pre-selected index, over the term of the loan. Home Equity loans offer a fixed interest rate, and Home Equity Lines of Credit feature a variable rate. Interest rates are based on the amount you borrow and the loan term.

Fixed rate annuities have minimum guarantees and "fixed" (or declared) interest rates. They are meant for the conservative investor that wants to take advantage of tax-deferral within a conservative investment. Since the interest rate from year to year is pre-determined or declared annually, the investor has a good idea of what his or her account value will be from year to year.

A fixed annuity earn a guaranteed rate of interest for a specific time period, such as one, three or five years. Once the guarantee period is over, a new interest rate is set for the next period. It also provides a guaranteed fixed benefit amount to the annuitant, expressed in terms of dollars per payment period. equity ? indexed annuity (EIA) is fixed annuity that offers all the advantage of traditional fixed annuities plus inflation protection because it invests in the stock market.

The interest rate on your mortgage will vary, unrestricted, up and down over the period of your loan dependant on the performance of the economy. The lender will guarantee you a set rate of interest on your loan, normally for a specified number of years. Once this period has expired, your interest rate will revert to the normal variable interest rate. The lender will guarantee that your rate of interest will not rise above a set interest rate.

A fixed rate mortgage is a loan where the principal and interest payment never change during the life of the loan. A variable rate mortgage is a loan where the interest rate can change periodically. The changes in the interest rate are tied into the market rates that exist at the time the rate is set. Initial rates for ARMs are generally lower than fixed rates, but can adjust upward or downward if interest rates change.

The major difference between Variable Rate and Fixed Term Rate is " Rate Not Guaranteed" versus " Rate Guaranteed".

With mortgages you pay a price for certainty. You generally pay more for a fixed rate mortgage because the lender is taking the risk as to what the rates will do by fixing the rate for you. You generally pay less for a variable rate mortgage because it is you that is taking the risk of uncertainty as to how interest rates will move - up or down. When you take out a fixed rate mortgage, your interest rate will never change throughout the term.

In general, an annuity is a contract by which an insurance company agrees to make regular payments. A fixed annuity guarantees principal and a specified interest rate, and may also offer additional amounts based on the claims-paying ability of the issuing company. A variable annuity does not make any guarantees. The returns and value of a variable annuity account will fluctuate based on the investment performance of the underlying securities in its portfolio.

Interest is calculated as a percentage rate of the loan/credit account principal. The interest rate can be fixed, which means it does not change over the life of the loan, or the rate can be variable, in which case it changes periodically. However, even a credit card with a fixed interest rate may see increases in the rate if the card user exhibits negative payment behavior (i.e. late payments, over the limit charges, etc.)

If you choose a variable rate loan, naturally the interest rate can rise or fall depending upon the cost of funds and therefore your repayments will rise or fall in line with rate movements. For many customers, the variable rate loans are popular as a means of owning their home quickly. Extra payments can be made at any time while also taking advantage of periods of low interest rates. Choosing a fixed rate loan means you can lock your interest in at a set rate for a predefined number of years.

The mortgage rate stays the same for the whole term and the mortgage payments are consistent during the term of the mortgage. The mortgage rate varies with fluctuations in the bank prime rate. As a result, mortgage payments may vary during the term of the mortgage. A minimum term commitment is often required (usually 3 years). You may have the option to "lock-in" the mortgage at a fixed rate during the term.

Annuities are a long-term investment. A fixed annuity provides slower growth, but has a fixed rate of return. A variable annuity may have more potential for growth and gives you more control over what is done with your money, but the element of risk can be greater.

Many Mexican Insurance programs use a percentage of the value of the covered vehicle to calculate deductibles. Typically 2% of the vehicle value for collision claims, and 5% of the vehicle value for Theft claims. We offer a fixed deductible option. This means $500 for collision and $1,000 for theft, regardless of the value of the vehicle. Many US & Canadian banks, finance companies and leasing companies now require that deductibles be fixed meaning $500 for collision and $1000 for theft.