I've been trying to relay the message to my clients in a variable rate...it's understandable these increases are cause for concern, but you need to be willing to ride it out. You need to absorb the high interest periods in order to take advantage of the lows.
Guaranteed the majority of people panicking about their variable rates are those within the first year or two of their 5-year term. Those in a variable rate in year 3-4 of the term not nearly as concerned.
This is not to say people shouldn't be concerned, as the increase has been staggering, but that you shouldn't have a knee-jerk reaction and lock into a fixed rate without seriously looking ahead.
@MacDaddy - you're totally right. Many banks are using this as an opportunity for retention. "Quick - you need to lock in for 5 years b/c of these increases."
Those that lock in for 5 years at ~5-5.50% like we've seen over the past 6 months are in for a rude awakening should rates come back down and they want to switch to lower rates. IRD penalties are going to be through the roof. This will be the trend come 2024/2025 in my opinion.
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