Quote:
Originally Posted by Sinny Darino
We are locked in at 2.6%, I was just saying it was Prime minus .4%!!!  |
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.