Okay.. Not sure where to start. Back story I guess. I'm up for renewal with my mortgage after finishing 5 yrs @ prime-0.85%. Now I'm being offered less of a discount off prime. I have found lower variable rates posted by brokers. Still slightly higher than I am currently paying. I was also offered a 2 year fixed for less than the 5 yr variable? How does that work? I want to take that as a sign the banks don't see interest rates coming up for a while.. A view I would agree with. TL;DR variable rate has gone up, fixed rate has gone down and now they have somewhat crossed eachother.
They tried to discourage me from switching by telling me I'd have to do a bunch of paperwork. I told them in no uncertain terms that I am not afraid to switch if they can't match (or beat, ideally) what I'm seeing elsewhere. And then basically walked out.
What's the general feeling for which is the smartest route to go right now? And why is it that the offered discount is less than before? To the point where their margin goes up significantly, even (especially?) with the BOC rate being lower? What should a guy reasonably expect to get these days?
Trying to decide if I'm unreasonable or actually being fucked with. Haven't really been keeping myself up to date over the last couple years since I was content to let the term run out while doing its thing..