Quick question?
Variable or fixed?
Variable or fixed?
Mortgage rates
- Thread starter ToSlow
- Start date
Quick answer: It’s different for everyone.
You want predictability and peace of mind? Fixed
You wanna ride the tariff / inflation / global event wave? Variable
I wanted the latter…went from 2.79% fixed to 1.1% and then all the way to 5.9%
Do not recommend…won’t do it again.
Now at 3.45% and anxiously waiting to see what happens next.
You wanna ride the tariff / inflation / global event wave? Variable
I wanted the latter…went from 2.79% fixed to 1.1% and then all the way to 5.9%
Do not recommend…won’t do it again.
Now at 3.45% and anxiously waiting to see what happens next.
Hoping the rates are going to drop again, i've got till Nov to make the choice
POWERMAN
Well-known member
I had to renew in Nov last year. Ended up going with Fixed just for peace of mind. Went up $300/month - I can live with it for the next 3 years.
I knew things 'could' get a bit sketchy once the new administration was established in the US.
Rumour has it rates could drop 2 more times this year...but who's to know..
I knew things 'could' get a bit sketchy once the new administration was established in the US.
Rumour has it rates could drop 2 more times this year...but who's to know..
I have to make that choice in Jan 2026. We’re on a fixed and it would be grea to if the rates continue to drop and we can renew on a lower fixed.
It’s also the first time in my life being on a fixed and it was a very well timed decision! Usually we get 5yr terms but this time we got a 3 yr term and it’s worked out well.
Not sure if you deal with brokers, but for me, that’s the way to go.
you’ve got time to shop around. I’m also hoping for some rate drops…but that means economy is
…My payments went (approx) 980->800->1264->1033 bi weekly during the fun times.
If I find fixed again sub 3% I’m locking in.
Have a great broker if you want someone to talk to.
If you don’t mind, send me a message…thxyou’ve got time to shop around. I’m also hoping for some rate drops…but that means economy is
My payments went (approx) 980->800->1264->1033 bi weekly during the fun times.
If I find fixed again sub 3% I’m locking in.
Have a great broker if you want someone to talk to.
If anyone really knew what was best , there would not be two options and brokers would all own Ferraris .
I was always fixed because I knew I could cover that amount and keep the house for x yrs . Friends went variable and either told me how much they saved or how much more it was costing .
Fixed allowed me to take a Twenty five yr mortgage, use two a month payments that would pay it out in twenty one yrs . With a couple windfalls it was gone in nineteen. Fixed served my needs .
I paid a high of nine point five and was on a fixed mortgage that crazy yr they went to seventeen, fixed for five yrs helped me jump that wave , but that was just luck on my part . Just remember banks are not your friend , thier job is to give you as much much credit as they can , swallowing the interest in on you .
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I was always fixed because I knew I could cover that amount and keep the house for x yrs . Friends went variable and either told me how much they saved or how much more it was costing .
Fixed allowed me to take a Twenty five yr mortgage, use two a month payments that would pay it out in twenty one yrs . With a couple windfalls it was gone in nineteen. Fixed served my needs .
I paid a high of nine point five and was on a fixed mortgage that crazy yr they went to seventeen, fixed for five yrs helped me jump that wave , but that was just luck on my part . Just remember banks are not your friend , thier job is to give you as much much credit as they can , swallowing the interest in on you .
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We went fixed from 13% to 12.5% over five years, bridging the 22% in between. Scary days.
Looks like lots of houses going on the market now,
People can’t afford a 1.5 million and up home, when the interest rates went up last time the lenders set prices higher. Leaving a lot of people scrambling now as they have a 4500 or monthly mortgage payment
People can’t afford a 1.5 million and up home, when the interest rates went up last time the lenders set prices higher. Leaving a lot of people scrambling now as they have a 4500 or monthly mortgage payment
Home on the range isn't always what people expect. Some areas have more restrictions than a condo. Add hidden responsibilities, a fickle crop market, government boards etc.For the tail end of my mortgage I'll be staying fixed, did variable in the past with no issues, but now I prefer stability in my monthly payments etc.
I live on a pretty rural road and almost every property/farm/home is up for sale
Rural living goes in cycles. Folks get tired of driving kids to town for sports and miss the convenience of city living , taxes get to be a bit much and some just age out on ability to care for the place . My uncle on ten acres at ninety two is still riding his mower and splitting firewood , but the gap in reality of doing that can’t be far out .
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I remember a time in the 80's when my morgage rate was over 16%, but the monthly payment was a relatively small percentage of our household bufget. Our first house, a 1,400 sq ft side split in a Montreal suburb, was purchased for the massive sum of $58,250............
Until the last couple of years people who did a variable rate usually saved money, but that all changed a few years ago when rates increased dramatically. Existing variable mortgages hit trigger points and payments increased substantially and / or amortizations periods were negatively impacted.
Look at the difference in your payment and make a decision that the potential savings in a varable rate is worth the risk of a future increase in rates and your payment that may, or may not, be affordable to your budget. If a significant increase in rates hits the trigger point and your payment increases can you actually meet this new commintment? If not, then go fixed for piece of mind.
Until the last couple of years people who did a variable rate usually saved money, but that all changed a few years ago when rates increased dramatically. Existing variable mortgages hit trigger points and payments increased substantially and / or amortizations periods were negatively impacted.
Look at the difference in your payment and make a decision that the potential savings in a varable rate is worth the risk of a future increase in rates and your payment that may, or may not, be affordable to your budget. If a significant increase in rates hits the trigger point and your payment increases can you actually meet this new commintment? If not, then go fixed for piece of mind.
Here's something my broker emailed me:
Before you choose, here are 10 questions you should be asking:
Choosing the right mortgage is about more than rate. It’s about flexibility, protection, and making sure your mortgage fits your life…not just your budget.
Before you choose, here are 10 questions you should be asking:
- Is this rate only available on insured mortgages?
If you have more than 20% equity, you may not qualify for the rate you saw advertised. - Can I make lump-sum payments or increase my monthly payment?
Flexibility matters if you want to pay down your mortgage faster. - What’s the penalty if I break this mortgage?
Life happens. Make sure you understand the cost of ending the term early. And be aware that prepayment penalties can vary widely between lenders. - Is this a short-term teaser rate?
If the rate only lasts 6 months and then resets much higher, your long-term cost could be greater. - Is this a no-frills mortgage?
Lower-rate products often remove useful features, which could limit your ability to refinance with other lenders, make prepayments, or move the mortgage with you if you buy a new home. - Can I transfer this mortgage to a new property?
If you move, a non-portable mortgage could mean thousands or even tens of thousands in prepayment penalties. - Is this a fixed or variable rate?
Fixed gives payment stability, while variable rates move with the market. What fits your risk tolerance? - How is the fixed-rate penalty calculated?
Not all lenders’ penalty calculations are created equal Some use harsher comparison rates in their IRD (interest rate differential) formula, which can make breaking your mortgage more costly. - What’s the lender’s reputation?
A low rate won’t mean much if service is poor or approvals are rigid. - What’s the total cost over the term?
Ensure you know the total cost, not just the rate.
Choosing the right mortgage is about more than rate. It’s about flexibility, protection, and making sure your mortgage fits your life…not just your budget.
When we renewed we looked at our budget to max out our payment so we could pay the mortgage down quicker. We pay $300 lump sum every month (150 biweekly) on top of the mortgage payment that comes directly off the principal. The 300 is an automatic payment at the same time as the normal mortgage payment so we don’t really feel it. It’s not a fortune but it makes a huge difference to the speed with which you can pay off the thing. We also went fixed 3y for peace of mind in turbulent times. Our broker crunched the numbers and we’d have only come ahead with variable after 3y, which is the term of our current mortgage so we can renegotiate then.
Our 13% mortgage was before there was a laptop in every drawer, so we got pages of printouts showing our status month by month. It was an eye opener when we realized that the early payments of about $400 were $399.50 interest and $0.50 principal.
We were allowed to pay off any amount of principal every six months so at the beginning, kicking in an extra $3.00 knocked six months off the term. Bonuses from work and windfalls slashed the term drastically.
Sitting with a friend last night I jokingly asked , how long will it take to pay off your two million dollar mortgage on your cottage ? His answer , who cares? My two million is earning five to seven percent and I borrowed this money at three . If it swings wrong I could pay it out . Or sell the place and take my property value gains . Why would I use my own money if I didn’t have to? I guess that’s why he has a three million dollar cottage and I do not lol.
@shanekingsly , that’s a great info list , a lot of people take what appears the best deal not looking at the fine points .
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@shanekingsly , that’s a great info list , a lot of people take what appears the best deal not looking at the fine points .
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