Is a 50/50 Mortgage the Right Balance for You?

Hybrid mortgages—also known as 50/50 mortgage products—combine an equal mix of fixed-rate and variable-rate components within a single mortgage. This approach offers the best of both worlds: the security of fixed payments and the flexibility of a variable rate.

Although variable-rate mortgages were once considered the clear choice for long-term savings, today’s historically low fixed rates make the 50/50 mortgage an attractive alternative.

Since predicting interest rates over the long term is challenging, a 50/50 mortgage provides diversification that reduces risk. With this product, half of your mortgage is locked into a five-year fixed rate, while the other half remains at a five-year variable rate. You can lock in the variable portion at any time without penalty, and each half operates independently, even though the mortgage is registered as a single collateral charge.

The 50/50 mortgage is well-suited to various borrowers, including those who:

• Prefer variable rates but worry that prime rates have bottomed out.

• Dislike being fully locked in to a fixed rate.

• Can’t decide between a fixed or variable mortgage.

• Are savvy first-time homebuyers looking for balanced options.

Key features of the 50/50 mortgage include:

• 20% annual lump-sum pre-payment privileges to pay down your principal faster.

• 20% annual payment increase options for added flexibility.

• Portability, allowing you to transfer your mortgage to a new property without penalty.

How Ezy Loan Can Help

At Ezy Loan, we understand that choosing the right mortgage can feel overwhelming. Our experienced mortgage professionals will work with you to assess your financial goals and risk tolerance, helping you decide if a 50/50 mortgage—or another product—is the best fit. Contact us today to explore your options and secure a mortgage that aligns with your future.