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Re: Interest Rates.
Mine too. Whatever. Roll the dice. You still locked started at what I'm assuming was at least 0.8% below what other people "locked in" at with their 5 year mortgages. Not to mention probably about 1.25% lower than a 10 year "locked in" mortgage. Provided that you can handle the "variability" of your mortgage payments and that the economy doesn't experience some sort of meltdown sending rates through the roof... you will be better off. Banks set the "locked in" rates to make them money as they are the ones that need to take on the added risk during the "locked in" period. Ahem... anyone check out the banks billion dollar revenues last year?!
At the end of the day, you will be happy with your variable rate. Taking on the "interest rate" risk for the banks/mortgage co's... does have its benefits. Now... if rates rise another full percentage point and stay there for a significant period of time... that will be another story. However, based on TD Economics and the Conference Board of Canada... I don't see that happening anytime soon. If it does go up... it will come back down right after.
Then again... if I had a crystal ball... I'd be driving the new Audi S8 when it comes out and not having a mortgage at all!!
Cheers...
Deuce.
Originally posted by liquid
At the end of the day, you will be happy with your variable rate. Taking on the "interest rate" risk for the banks/mortgage co's... does have its benefits. Now... if rates rise another full percentage point and stay there for a significant period of time... that will be another story. However, based on TD Economics and the Conference Board of Canada... I don't see that happening anytime soon. If it does go up... it will come back down right after.
Then again... if I had a crystal ball... I'd be driving the new Audi S8 when it comes out and not having a mortgage at all!!
Cheers...
Deuce.
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