Hello
I am currently looking at getting my finances in places for my new mortgage and have a commitment for a 3yr Closed Term Mortgage at PRIME - 0.XX. From what I see, most banks offer a 5yr Variable. Other than 3yrs VS 5yrs, what is the actual difference since it floats with PRIME?
With a Fixed, I know that I will be paying X% for Y years and if I believe that rates will be going up significantly, then I would want to lock in for as long as possible (ie: 5 - 10 yrs), so I would probably go for a 5 year Fixed instead of a 3 year. However, with a variable, I can`t see an advantage or disadvantage with a 3yr VS 5yr.
What are the advantages/disadvantages with signing a 3year Variable instead of the standard 5year?
Thank you
I am currently looking at getting my finances in places for my new mortgage and have a commitment for a 3yr Closed Term Mortgage at PRIME - 0.XX. From what I see, most banks offer a 5yr Variable. Other than 3yrs VS 5yrs, what is the actual difference since it floats with PRIME?
With a Fixed, I know that I will be paying X% for Y years and if I believe that rates will be going up significantly, then I would want to lock in for as long as possible (ie: 5 - 10 yrs), so I would probably go for a 5 year Fixed instead of a 3 year. However, with a variable, I can`t see an advantage or disadvantage with a 3yr VS 5yr.
What are the advantages/disadvantages with signing a 3year Variable instead of the standard 5year?
Thank you