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The differences between a fixed interest rate mortgage and a variable interest rate mortgage. Fixed: - Payment stays the same for the term. - Strict prepayment penalties - Based on 5 year Canada Bond Yield Variable: - Payments change as the Prime Rate changes - Static or Adjustable payments - Static Payments: Interest changes, but your payment doesn't. - Can trigger rates and negative amortization. - Adjustable payment: Payment changes based on interest rates. - amortization stays the same. - Ba
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