Fixed mortgage vs Variable

[540i]

I have a mortgage on a rental property that is up for renewal at the end of April. I have been on the fence as to what to do with it. I have been on variable since day one. I'm currently at 2.45% open. TD bank (which I've been banking with forever)is offering me a 2.8%/ 5 year fixed. I'm wondering if they get me lower than that? I have multiple mortgages with them - would this help me?

What's your thoughts? What's the best fixed rate you have gotten as
as of recent and with who?

Thanks in advance for your input!

[Kloubek]

2.8 is pretty darn good.

I guess it all depends on whether you want to have the security or not.

Personally, I'm in a fixed rate because interest rates can only go up. With that said, my rate is 3.09 and I just renewed a few months ago. So if I managed 2.8 I'd be pretty damn happy and I think they're offering you a really good rate.

[dj_rice]

Going rate for mortgages now is 2.89. I got offered 2.84 with TD. I'm sure you can get even 2.6 with a mortgage broker if you looked around


Whether to go fixed vs variable....if we all knew the correct answer to this, we would be buying lottery tickets. If your a gambling man, go variable. If you want security and know your payments, go fixed. Like above posted said, the rates are insanely low right now and the only other direction is to go up.

[flipstah]

It's all about preference.

For me, a mortage is too big of a value to gamble with and so fixed rate FTW.

[HiTempguy1]

And of course, rates basically can't go any lower. Why WOULDN'T you lock in? Have interest rates on property EVER been lower than 2.59%??? At some point, there is no reason for the bank to loan money (unless they want to get into the house building business and start 0% financing houses like car manufacturers do :nut: )

[Tik-Tok]

Ours is up next year, I'm seriously considering locking in for as long as possible, 10+years.

[msommers]

I'm on board with what everyone else is saying - fixed. What kind of rates would you get for locking in over 10 years, Tik-Tok?

[Xtrema]

Fixed. If variable goes any lower, you'll worry about paying mortgage than how much it s.

[lilmira]

Just locked mine at 2.89. Variable is only like what P-0.6? Not worth the risk for me.

Back then the difference was a lot bigger, I was way ahead with variable to begin with.

[540i]

Thanks everyone for your input.

I was also considering 10 year fixed with rates at record lows. I believe TD is offering 10year fixed/3.69%?

I will be going fixed....5 or 10 year.

[Tik-Tok]

Originally posted by msommers
I'm on board with what everyone else is saying - fixed. What kind of rates would you get for locking in over 10 years, Tik-Tok?

Generally, they're much higher (6.5% posted right now at a few places), but if rates stay similar, I'm sure I could hunt one down for 2% less than posted.

edit: like right now CIBC 7 year is 5.95% posted, but a special offer of 3.79

[RX_EVOLV]

Just locked in 2.89% @ 5 years today.

[Type_S1]

Lock in for 10 years at 3%.

Rates can literally not go any lower then they are this year. The risk/reward for the bank is coming to a point at current rates they can't go lower.

[Toma]

Originally posted by Type_S1
Lock in for 10 years at 3%.

Rates can literally not go any lower then they are this year. The risk/reward for the bank is coming to a point at current rates they can't go lower.
That's not entirely true. I had a variable open at prime minus 1.25

Currently have a variable open at prime minus .75.

Prime is 3. So my mortgaqe is 2.25. Meaning, rates would have to move a half percent to just break even with the best 5 year rate today.

This is the first time I remember that you can get a 5 year closed below prime. A foreshadowing of the slaughter that is soon to follow lol.

And when the shit hits the fan, they drop rates. Isn't Japan at zero percent??

I might lock in at 2.79 closed for 5.

[ercchry]

Originally posted by flipstah
It's all about preference.

For me, a mortage is too big of a value to gamble with and so fixed rate FTW.

oh really, tell me more about how you have a mortgage

:poosie: ;) :D :rofl:

[msommers]

Originally posted by Type_S1
Lock in for 10 years at 3%.

Rates can literally not go any lower then they are this year. The risk/reward for the bank is coming to a point at current rates they can't go lower.

Wow 3% over 10 years?! PM me where you got that!

[Sugarphreak]

...

[Frankie88]

Fixed rates now are comparatively, if NOT absolutely, better than variable rates now, considering Fixed rates are not historically low and the uncertainty over "PRIME" in the next 5 years.