Quote:
Originally Posted by powderjunkie
I'm pretty sure 50 year old me won't mind an extra few years of mortgage payments compared to what might have been possible.
I think this might be the biggest failure here...people don't recognize how/when they'll actually realize their 'winnings' if they come to pass. Whereas the risks could be realized immediately [and painfully]
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Variable is more than just savings over the near/long term though. It is flexibility which is why I have my mortgages in it. I seem to end up moving every other year and I would have spent a lot of money breaking mortgages or being handcuffed on porting compared the the flexibility of my variable.
Average mortgage is broken every 3 years yet #1 mortgage people request is a 5 year fixed.
Property values in Calgary shot up out of the blue last year great chance to refiance the house to consolidate a business loan at higher interest rates. While reducing my discount on Prime on my variable. Variable gives you the ability to keep locking in better discounts on Prime where as if fixed rates drop your penalty is significantly higher.