Quote:
Originally Posted by Kobatuzzied
Bank of Canada might lower interest rates on December 4 but that would only immediately affect variable rate mortgages and line of credits.
I'd personally go with the secure line of credits. More flexibilty on payments and no payout penalty if you ever decide to sell.
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I disagree with this. I did a ton of research comparing a traditional mortgage with a LOC Credit style mortgage before I took one out. I compared Manulife with Royal Bank, and in the end a traditional mortgage is better for you. The interest rate is lower with a traditional mortgage. With the difference in interest rates between Royal and Manulife, put that money towards your principal with Royal Bank and it is a better option.
Simply put, lower interest rates = better for you. Whether you want to go fixed or variable, that's a different question. I currently have a variable closed mortgage for 5 years at 5.5% (Prime - 0.75%). Variable has always outperformed fixed interest rates over a period of time, so I'd recommend that. Then again, some people like the security of knowing their interest rate is fixed, so to each their own.
Do a bit of research and talk to some mortgage experts so you can get a better understanding of how it works.