Fixed Rate or Variable Rate Mortgage
Here's one way of looking at the situation. The spread between fixed (4.59%) and variable (1.75%) is significant, at about 2.80%. We also know that in the coming months the Bank of Canada will increase the prime rate. However, with the latest report from Statistics Canada indicating that inflation was down in March it's questionable how quickly the prime rate will move up. Variable is looking like the better option these days but if you can’t make up your mind there is always the Merix 50/50. (3.25%).
If you'd like to discuss your situation or explore your options, feel free to contact me. Chris Molder, Toronto mortgage broker. 416.461.0204