Quote:
Originally Posted by calgarygeologist
So what do folks think might be the best plan for a mortgage renewal next year? My variable rate is up December 2023 and just out curiousity I submitted a request to my lender for a conversion agreement and they provided me with an opportunity to lock in at 5.09% until Jan 2028. I wish I had a crystal ball but it seems like 5.09% might be decent for the next 2 or 3 years and that rates could go down after that. It looks like posted rates are mid to high 5% or low 6% right now so I'm somewhat tempted at 5.09%.
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That's the important part right there, and I tend to agree. I would lean towards a 2 or 3 year term if in the same situation, depending on what your lender offers for those, and depending what your current variable rate is. I would not want to lock in at over 5% for a full 5 years.
As someone else said though, no one can predict interest rates, and it depends on your overall risk tolerance.