Continuing Economic troubles and lenders’ profit may all have conspired to shrink variable discounts beyond our expectations and as a result, Fixed rates are gaining in popularity.


We have an unusually small 35+/- basis point spread between Fixed rates and Variable rates.  A spread that tight doesn’t come around very often and..., it might even make you go as far as to rethink all of the historic research that suggests variables are the way to go (especially for those coming off Variable Rate Mortgages with a big discount)  For most of us who are “financially secure borrowers” and who do not plan to break their mortgage within the next 4-5 years, I would give serious consideration to Fixed rates.  With Fixed 5yr terms at or near the 2.99% mark and Fixed 10yr term mortgages at 3.89%  I would say these carry a fairly low rate premium for those extra years’ of rate protection.  Interest rates will eventually rise (sometime) in the future.  However no-one is predicting when that date will come with any degree of certainty!    


To discuss this topic further, give me a call and we can set up an appointment to go over your specific set of circumstances.




Last Updated: 12/12/2012 4:38:52 PM

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