Should You Be Locking In Your Mortgage Rate?

What a great question! 

We have seen quite an increase to bond rates over the last couple of months and the result is that fixed rates are hovering up around 5% right now.  With Prime rate sitting at 4.70% and discounts available off that for variable rate terms, the variable mortgage is making a come-back in popularity. 

Typically, when the Bank of Canada increases their overnight rate, upon which Prime rate is based, they do so by 0.25% at a time.  So, if you can get a variable rate under 4%, Prime rate would need to increase by 0.25% four times to hit current fixed rates. 

Therefore, my estimation is that variable rates are still the most affordable.  However, I am not making your mortgage payments... If mortgage rate fluctuations are going to keep you up at night, a variable product may not be right for you. 

If you are concerned about your mortgage, please give me a call and we discuss your personal situation. 

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