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Old 04-09-2023, 08:24 PM   #1167
GGG
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Originally Posted by bluejays View Post
I don't know what's right, and I don't know what's wrong, but in under a month I have to renew my mortgage with CIBC. I'm looking to move to a bigger place so I want to keep it open, but don't want to pay open rates. So what I think I'm going to do is pay down as much as I can at renewal, go variable at prime - 0.35%, but split the mortgage into a heloc at prime + 0.5% as much as possible, so when it comes time to sell (potentially this summer), the penalty won't be that much on breaking the variable mortgage. I don't know if any of this is helpful to you but it may be. General rule of thumb is to do what you can afford. So if you're nearing your threshold for your mortgage payments rubbing up against your income payments, you may want to go fixed - just know fixed has higher penalties, and IF rates go down a lot, you're locked in. Again, I don't know what your answer is but being risk averse when it comes to your biggest investment is probably prudent.
Are you staying within Canada? If so you may be able to port your mortgage from your current house to your new house for the portion that still exists on the current house without penalty. At least I was able to do this 15 years. You have to stay with the same provider though for the new house.
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