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Slava · 11-20-2007, 02:03 PM

I think that the original rate is a good one...the best I'm aware of right now is 5.99 fixed for five years.

Traditionally people with floating rates have done better than people with fixed rates over the long-term. The Manulife account reference above is not for everyone; some people haven't got the discipline to use it properly and get out of debt faster.

Further, the LOC accounts should be used as part of an overall financial strategy to maximize their benefit. No question though, if they are used solely as a mortgage product (with no other debt factored in, and no other reason for using one other than paying interest only) then the use is limited. At this point with a period of low interest rates and rising rates over the past 18 months or so, most people want to lock-in and preserve those lower rates.

11-20-2007, 02:03 PM	#15
Slava Franchise Player Join Date: Dec 2006 Location: Calgary, Alberta Exp:	I think that the original rate is a good one...the best I'm aware of right now is 5.99 fixed for five years. Traditionally people with floating rates have done better than people with fixed rates over the long-term. The Manulife account reference above is not for everyone; some people haven't got the discipline to use it properly and get out of debt faster. Further, the LOC accounts should be used as part of an overall financial strategy to maximize their benefit. No question though, if they are used solely as a mortgage product (with no other debt factored in, and no other reason for using one other than paying interest only) then the use is limited. At this point with a period of low interest rates and rising rates over the past 18 months or so, most people want to lock-in and preserve those lower rates.