Quote:
Originally Posted by Slava
The whole point of a variable rate product is to have it move with prime though. You take the risk that if rates rise that you will pay more, and get the reward that when rates fall that you pay less. Mortgage rates are different because they're based on bonds, but this is a different case.
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This. I, foolishly apparently, thought that bank prime moved with BOC prime. I took on extra risk with a variable mortgage under the assumption that if rates went up my interest would go up but if rates went down my interest would go down. Boy was I mistaken...
To be honest it's more the matter of principle...
