Quote:
Originally Posted by MillerTime GFG
Variable "spreads" are still pretty good, around prime - 1.00% in many cases. I personally like either a variable rate, because rates will come down organically as the overnight rate comes down, or a short term fixed rate (1 or 2 years) so you can hopefully renew at a lower rate.
Downfall of short-term fixed rates however:
- Generally higher than 4 and 5-year fixed rates
- You're still "guessing" when rates will come down. What if you take a 1 year term, and rates haven't come down at the end of that term...then you're in the same spot
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Is there a commercially available option for retail banking / mortgage clients to buy a rate cap on a variable rate mortgage?