Variable Rate Mortgage
Got some great information from the RBC recently about a variable rate mortgage. If you are currently on a variable rate mortgage, below is some information to consider about the current rate situation. There is no need to panic about this info, it is just solid info to help you make a decision.
Things to consider:
- As you can see below we have seen a strong upward move on the 5 yr bonds which will indicate a move up on the 5yr fixed rate in the near future.
- We are expecting this due to the new mortgage rules as they will have a cost of funds impact
- We are not expecting much more than a .25% move here
- If your still running a variable closed mortgage and your rate is higher than Prime -.3 then you may want to consider locking into the low fixed rates for a possible 2,4,5,yr fixed rate prior to the increases. You must renew to a term that is longer than your remaining term on your variable rate mortgage. Ie: if you mature in 2 yrs you need a 3+ yr term to renew to.
Questions about at Variable Rate Mortgage? As always, I’m available to answer any questions you have, so feel free to Ask Slade.