Quote:
Originally Posted by blankall
I went fixed with my last two mortgages, as things were really low. Only for 5 years. After having lived through this latest experience, I'd definitely go for a 10 year fixed if things ever got to around 2.5% on a 10 year again.
You have to weigh the value of certainty in your bill payments.
Right now though, I'd go variable. My current mortgage holder, CIBC, has a .8% spread between variable and fixed. I see rates going below .8% of where they are now.
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During Covid you had to pay .75% or so premium to go between 5 and 10 year terms. Next September thru March would be the renewal of the lowest rates. So with that .75% benefit early on a a 25 year mortgage will still be marginally better at +1% over the next 5 years. So will rates drop 2% over the next year? That doesn’t seem unreasonable and you just go variable.
So the 10 yr rate even in the best condition to take a 10 yr rate you could envision likely ends up pretty close to even with 5yr then back to variable.