Quote:
Originally Posted by Kavy
I guess that makes sense, with fixed you have to bet on the future, I just thought it was a internal bank algorithm or something, thank you!
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Kavy, it's variable that you're taking more of a gamble in that there is a risk of fluctuation (up and down). Fixed is more costly but stable for the term.
Hulk, thanks for that. Was completely unaware of that. I too assumed it was calculated through prime.
Realtor, your last post changes the whole premise of the thread given that it a bank employee that was your specialist. The title suggested that rates were going up across the board and led to an assumption (on my part anyway) that this information was from someone that works in the "general" mortgage industry (i.e. a broker) as opposed to a one bank employee.
FWIW from my experience i would never ever consider a mortgage of any kind without consulting a mortgage broker and never ever believe a word I was told from a bank mortgage specialist based on a conversation I had years back in Scotiabank whilst searching for my first mortgage ....
Him: We can offer you 4.00 (example). That's the very best we can do and you'll find that you won't get that anywhere else.
Me: RBC can do 3.75 (lying through teeth)
Him: Let me just go and talk to my manager. Returns a minute later to say they'll match it.
Went and got a broker for a much better deal.
JMO but if you're borrowing that kind of money then I'd explore every option out there.