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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the entire fake economy would collapse if they raised rates %1 so don't sweat it. Canadian rates are tied to US rates. If the US keeps rates low so will Canada regardless of what's going on here. The US is never raising rates again. It's impossible without completely collapsing their banking system and throwing the government into default. I would be more than comfortable holding a variable rate for the next 5 years over closed. If anything, I wouldn't be surprised if the BOC lowers rates further.