Mortgage Advice
 

Hi

I have a variable mortgage now at 3% , prime basically.

Due to the recent interest increases, I have been shopping around for fixed rates.

I got an offer of 3.54% for 5 year fixed closed.

What do you guys think?

Can you sleep at night with a variable rate? Can you afford the rate to go up by a percent or three? Maybe go talk to a mortgage advisor, or your bank. Personally, I prefer the variable, but I'm sub prime still.

3.54 is pretty damn good acutally.

If you don't want the risk, aand want to wait around to see.

My suggestion is to lock it in, have the piece of mind.

edit: though, i don't see BoC raising their rates anymore in the next 6 months to a year.

if your variable mortgage is at prime then you should seriously consider locking in
your rate is currently only .54% below what the fixed is. over the next FIVE years it is highly likely that prime will increase by that much. again u must consider that it would be the AVERAGE rate. currently variable rates are as low as prime -0.8. this gives a lots more room for prime to increase. are you with a mortgage provider that would allow splitting the mortgage into half variable half fixed? personally i am a big fan of this given the best of both worlds.

Locking into the 5 year fixed are you paying the penalty? although it likely isnt much currently it is still a factor to consider. If you are paying the penalty regardless then just negotiate to get the variable again with a prime minus discount.

Good luck

I thought fixed was like 5 now? where did you get 3.5? dam I should go lock in a rate before it goes up again. incase I decide to buy

I don't think he'll be paying a penalty, all banks don't have penalties when changing from Variable to Fixed terms, as long as they take a term longer then what's remaning on the MTG.

i.e.: 2 years left on the variable and taking a 5 year fixed term

probably not but still something to ask.

btw 3.45 on a 5 year just hit the market.

I am very good friends with a Mortgage Broker and can get you a free rate quote if you would like.

check out his website if you would like:

www.mortgagealliance.com/minhpham

where are you getting 3.45? my bank just told me their best was 3.9

Coast is offering 3.45% but I believe there are some catches. Don't go back to the bank that offered you 3.9. Thats a horrible rate.

yea coast capital was offering with lots of catches.

i work for rbc and i was matching the rate for mtgs over 300,000