Quote:
Originally Posted by Azure
The amount of variable rate mortgages is stunning. Did people honestly not realize interest rates were going to go up again? Locking in at 2.2%, versus variable rate 2% and 'oh so much cheaper', but not thinking we are due for a big increase? Or am I missing something?
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VaRiAbLe AlWaYs WiNs.
I don't get it either, especially once the pandemic hit my personal uncertainty meter shot through the roof.
I can see playing with variable in future terms when there is actual upside reward, but recently it's been a tiny FOMO reward compared to an unlimited risk (of course you can usually lock in without penalty).
The only sensible reasoning to me (in the last few years) is if you expected to sell sooner than later.