Fix or variable

David Chien

Inspired Forum Member
Registered
With the current 5 yr. fix at 2.04 % vs. variable of P-0.6 (1.85%), Will it be safe to say that better to take out a 5 yrs. fix now.
Love to hear your thoughts
 

Thomas Beyer

Senior Forum Member
REIN Member
The 5 yr fixed typically has the worst penalty if you need to break the mortgage for any reason. I prefer variable or short term (1-3 year) fixed.


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Go with a variable rate if you may wish to sell prior to 5 year anniversary as max 3 month penalty unlike fixed rates. Line up mortgage with your property goals. If long term then 5 year ok unless it’s well over 2%.

So in your case 2.04% is fine if you envision owning 5+ years although of course 1.8% is cheaper !!

Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com
 
Last edited:

David Chien

Inspired Forum Member
Registered
Go with a variable rate if you may wish to sell prior to 5 year anniversary as max 3 month penalty unlike fixed rates. Line up mortgage with your property goals. Of long term then 5 year ok unless it’s well over 2%.

So in your case 2.04% is fine if you envision owning 5+ years although of course 1.8% is cheaper !!

Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com

Thank you Thomas.
 

Jason Anbara

CEO NorthLend Financial Inc.
REIN Member
Hi the five year fixed is the best option right now by far. The penalties on fixed all depend on what the rates are at during the time when you break the mortgage. If rates are higher than they are today , the penalty is only 3 months interest. If you use some monoline lenders , penalties are based on the rate you have vs the banks using posted rates ( double + ). Please feel free to call me to discuss further @ +16134044845

Www.jasonanbara.com



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