One thing people should be weary of fixed mortgages are the stiff penalties to break them. With a variable rate at least it’s about three months interest as the penalty. With fixed rates it isn’t calculated the same across most lenders and the penalties are a lot higher. I’m on variable and oddly with cibc the payments are staying the same, but the proportion of what’s going to interest vs. principle is shifting each month more and more towards interest. I do think a year from now when the recession is official things should lower a bit so I think not locking in was a good idea, especially if I want to sell, I won’t no part of those fixed rate penalties.
|