Mortgage Tip Tuesday: This or That – Your Guide to Smart Mortgage Decisions

Mortgage decisions aren’t always straightforward, and most homeowners eventually face at least one of the classic “this or that” dilemmas. The truth is that there’s rarely a one-size-fits-all answer. Every option has scenarios where it shines—and situations where it doesn’t. Below, I’m breaking down the most common mortgage choices buyers and homeowners wrestle with, and how to decide which path might work best for you.

Variable vs Fixed Rates

Variable rates typically start lower and move with market conditions. This means your payments or amortization can change depending on the lender and the type of variable product. Fixed rates offer stability, predictable payments, and protection from market fluctuations. There is no universal “winner.” The right choice depends on your tolerance for payment changes, your financial stability, and your long-term goals. I walk clients through the numbers for both options so you can make a confident, informed decision.

HELOC vs Refinance

A Home Equity Line of Credit (HELOC) gives you flexible access to your home equity and you only pay interest on what you actually use. It’s excellent for long-term planning, emergency funds, renovations, or strategic investing. A refinance replaces your existing mortgage with a new one, potentially lowering payments, consolidating debt, or restructuring your finances. Choosing between the two depends on whether you value predictable structure or flexible borrowing capacity. Both can be strategic tools when used correctly.

20% Down vs Less Than 20%

Putting 20% or more down removes the need for mortgage default insurance and lowers your monthly payment. However, putting less than 20% down can sometimes offer better interest rates and allows you to keep more cash on hand for emergencies, investments, or improvements. Sometimes keeping liquidity is more advantageous than minimizing insurance premiums. It all comes down to your overall financial plan—not just the down payment itself.

Pay It Down vs Keep It Liquid

Aggressively paying down your mortgage reduces long-term interest and shortens your amortization. On the other hand, keeping cash liquid gives you flexibility for investing, renovations, opportunities, or life’s unexpected moments. Deciding which path makes sense depends on your financial goals, your risk tolerance, and whether liquidity or long-term savings matter more to you right now. I help clients model both approaches so they can choose the option that best supports their future.

DIY vs Working With a Broker

Handling your mortgage alone means comparing rates, navigating lender policies, and hoping you haven’t missed anything hidden in the fine print. Working with a broker means strategic advice, access to multiple lenders through one application, and someone who understands how to match your situation with the right product. A mortgage is more than a rate—it’s a strategy. A broker ensures that strategy works today and continues to support you in the years ahead.

The Bottom Line

Every homeowner’s financial picture is different, which means the right mortgage move will never be the same for everyone. Your goals, your risk tolerance, your income, your plans, and your comfort level all influence which path makes the most sense. If you’re coming up for renewal, thinking about refinancing, planning a purchase, or simply curious about what your equity can do for you, it’s worth developing a strategy instead of guessing.

Need support building your mortgage plan? I’m always here to help.

📲 250-300-2008
📧 leanne@mymortgagestrategy.ca
🌐 MyMortgageStrategy.ca
📍 Serving Salmon Arm, the Shuswap, the Okanagan & all of BC
🏡 Turning Home Ownership Dreams Into Reality