What would you do with this offer from the bank?

[LAndersen]

My wife and I have a renewal coming up on a buy and hold property which we are planning to keep. Our renewal isn't until August and we received the offer from our current lender which we have found interesting. We have also contacted our broker to see if better opportunities lie out their. First National has offered us 3 different rates of interest. They have a 4 year fixed at 2.77%, a 5 year fixed at 3.09% and a variable at p-.50. If we stay with the current lender, which would you take and why? Thank you in advance.

 

[Sherilynn]

I would probably take the 4 year. It is almost as low as the variable and I'd wager that the variable isn't going any lower, but will rise a little over the next 4 years. Plus you have the extra "sleep at night" factor.



I am not a fan of 5-year mortgages. Statistically, mortgage don't last that long as people either sell or refinance in about 3 - 4 years. With prices set to increase, you may find that you would like to pull out equity to buy another property or finance reno's.



Another possibility is to add an automatically-advancing secured line of credit to your mortgage.

 

[coolaj]

I would say option 1 or option 3

I have a portfolio of roughly the same amount of fixed and variable mortgages. I used to keep only varable in the beginning but then as the numbers started growing I started option for fixed as it was neccessary.



I would call the
First National
First National and ask them if they can do better then the offer that they send. Usually it is

 

[Thomas Beyer]

P-0.5 or 2.7 are both excellent. Given the Ontario debt machine primare rate might ge lower in Canada later this year or next !



What is the "rack rate" offered for the auto-renewal ? Usually they are not competitive !