TORONTO, March 10 /CNW/ - Most experts believe interest rates are going to go up. How fast and when remains a question, but given the historically low levels, up is the obvious direction. This leaves many new homebuyers and Canadians who are renewing their mortgage wondering how to best prepare for the increase while taking advantage of the current opportunity. Canadians may be asking: do I lock into a long-term mortgage now or do I go variable for a lower interest rate? Scotiabank suggests that Canadians consider doing both by diversifying their mortgage.

"Some Canadians prefer the peace of mind of a fixed-term mortgage, while others enjoy the flexibility of a variable mortgage, but the decision doesn't have to be either/or," said David Stafford, Managing Director, Scotiabank Real Estate Secured Lending. "You wouldn't invest all of your eggs in one basket, so why would you borrow that way?"

According to Mr. Stafford, Canadians can combine fixed and variable rates with the Scotia Total Equity Plan (STEP), which allows them to take advantage of, and protect against, changes in the markets and with interest rates. The flexibility of the variable rate mortgage also means that Canadians can always change their mind and lock-in more of their mortgage at a fixed rate.

Similar to investing, small changes can have a big impact over 20-30 years. There are a number of small changes you can make to your borrowing plan that can have a big impact on how fast you pay down your mortgage.

To find out more about how to borrow to get ahead, visit www.letthesavingbegin.com or to hear what other Canadians have to say about borrowing, visit us on Facebook at www.facebook.com/scotiabank.

Let the Saving Begin is a Scotiabank program designed to inspire and empower Canadians to get on track with their saving, investing and borrowing habits.

Built on three simple principles, Let the Saving Begin encourages Canadians to:

• Save automatically, because it works;
• Invest for your future, because no one else will; and
• Borrow to get ahead.

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 70,000 employees, Scotiabank Group and its affiliates serve some 18.6 million customers in more than 50 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets above $541 billion (as at January 31, 2011), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.