What does the misc think? Should I stay on a variable rate mortgage with a 0.95 discount on prime or accept an offer today for a 60 month fixed rate of 5.25%?

Beavercell in Ontario for reference

What are we thinking the prime rate could go up to?

My rate right now is 4.5% as prime is currently 5.45%

Honestly doesnt matter much at this point. When rates drop again, lock in a lower fixed rate, but in the mean time your fixed rate will be **** and you wont want that in 3-5 years when rates come back down, and your variable rate will be **** as well until rates drop but at least it might come back down vs the fixed.

Wait, regret, make the change to a fixed when rates are lower and more stable

-Bulge Bracket former Banker turned PE dink sukker.

edit: didnt notice it was a car loan not a housing loan. beating the market right now on one side... rates are probably still fukked in the short term though so I could see that creeping up. For me, I'd lock in the 5 for peace of mind, its only 5 years, but, if you like riskier stuff, do the yolo play on a variable rate and maybe you'll come out ahead. At this point you have 200 bps to play with before you take a loss.

lol at you variablecells! Locked in at 1.08% for the last year...gotta another 2 years left.

lenders hate him for this one simple trick:

making shyt up on the internet!

It is a house loan...

your original advice seems solid, I was thinking the same not much to gain or save by taking the fixed rate over the variable other than peace of mind if the rate goes over 6.2% and even then is it going to stay above that for 5 years? Hard to see that. Prime rate was like 3.2% (my rate was 2.25% with my discount on prime) when we got the mortgage and at that time they offered us a 5% fixed rate

Are you Canadian? I think things are slightly different here but admittedly I am very green and this is my first time around doing this. We used a broker who was a complete dumb fuhk recommended to me by family so I wouldn't doubt he didn't get us the best deal he could. Certainly would do things differently a second time around.

But as far as I can tell the 5% fixed rate is not unusual, it seems like its pretty average. Ref this website:
https://rates.ca/mortgage-rates/ontario

I don't know enough about how rates in Canada work to help. I'll just stay here in my poor crashing house market in the US at my 2.89% while all the rich rentcels laugh at me.

So rates did go up today then, site i was checking says its still 5.45%

I applied for and got the mortgage in April I believe. The offer was 2.25% variable (0.95 discount on BoC Prime) or 5% fixed. Last Wednesday I requested an offer to switch to fixed rate right now and they offered me 5.25% for 60 months, expires today...

In what way did I get washed? You think I should have been offered a better fixed rate?

it's over for mortgagecels

inb4 squatter Goldenbull

Beavercel?


It’s over for you either way

fuark i guess its time to rope

Do variable rate mortgages in Canada have Caps like they do in the US?

I think I'd choose an ARM right now.