Quote:
Originally Posted by MillerTime GFG
I really doubt you're locked in at 2.6%. When you lock in, you would be locked into whatever the current fixed rates are, which are currently between 3.09% - 3.39% depending on the lender. Most likely, you are on a 5 year variable rate at prime minus 0.4%. This doesn't mean that you are locked into 2.60%, but instead, you are going to be 0.4% less than whatever prime is for the 5 year period. Therefore, if the Bank of Canada decides that the prime lending rate was to increase to 4%, your rate would then be 3.6%.
I would speak to your broker to clarify, but feel free to send me a message as well.
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2 year fixed at 2.59% is the number today for a lot of lenders.
Not sure many people are doing only 2 year fixed terms? Are they a bad idea?