Article: Variable-rate mortgages misunderstood

face=+Bold; Reason many opt for fixed rate, bank survey findsface=-Bold;

By Eric Beauchesne

OTTAWA -- Most Canadians are confused about variable-rate mortgages, with three-quarters thinking they will result in variable payments should interest rates change, according to survey results released Thursday by the Royal Bank.

However, that's not necessarily the case, the country's largest residential mortgage lender says in an analysis of the results of its latest annual mortgage survey.

Nonetheless, that's the main reason cited for not opting for a variable-rate mortgage, even though they could save homebuyers and owners money, the analysis said.

Two-thirds said they found it difficult to ...

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