Fixed or Variable mortgage?

[djp55]

Hi there,

Our mortgage renewal date is approaching for a condo we will likely keep for another 5 years.

RBC is offering the following terms.


1) 5 year fixed closed rate is now 3.29%

2) 4 year fixed closed = 3.09%

3) 5 year variable closed rate is prime - 0.4% = 2.6%

Which would you choose? Any suggestions on how I can get better?

thanks,

David

 

[BlaineBradley]

Hello,



www.ratehub.ca shows...



1.) a 5 year fixed close at 3.08%

2.) a 4 year fixed closed at 3.09%

3.) 5 year variable at 2.39%



Have you talked to a mortgage broker?

 

[Thomas Beyer]

3.0x% for 5 years is pretty good. Variable prime minus 0.4% is cheaper now, and for the next year or two, but might be higher (or not) in year 3-5. Depends on your worldview of interest rates in 2017-2019.



Don't major in minors.



Get a mortgage, then focus on two, maybe three other key things: buying more assets with more investors/JV money .. all impeccably manged ! That is how true wealth is built, one asset at a time.

 

[mortgageman]

The rates quoted on ratehub will most likely be for high-ratio, primary residences. Don't be surprised if rental property pricing is nowhere near those rates.