Quote:
Originally Posted by InvisibleSoul
Is this only for fixed rate mortgages, not for variable rate?
The first post saying "fixed-term" confused me.
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Yes, yet unless you're banking on a repeat of Japan's lost decade, fixed 5yr rates are < 1% more than variable (2.85 vs 3.7) and IMHO the chances of rates raising > 1% are very good. Look at what happened with treasury yields in the US, it causes mortgage rates to go up ~1% within 2 weeks! or what happened last time the BoC raised rates, rates went up ~2% in a little over a year!
It'd be silly not to lock in a super low fixed rate, that is unless you think the recession is only going to get worse... then why the hell are you buying? (for those not refinancing).