Locking in your variable rate is NOT your only option!
Do you currently have a variable rate mortgage? I bet with all that is going on, you may be thinking “Should I lock my mortgage into a fixed rate or stay variable”.
This is such a common question people are thinking and asking about.
If you're not aware, on December 7, 2022 the Bank of Canada announced that the prime rate was increasing 0.50%. That means that prime will now be 6.45%.
The information we are provided indicate this is expected to be one of the last increases before things balance out. It is also expected that we should start seeing decreases in mid/late 2023.
Having said that, is the fixed rate an option to consider? In my opinion, I still recommend riding out the variable because long term the savings should be in your favor BUT some fixed rates have dropped recently and there are some strategies we can take advantage of to switch rates over to a fixed rate below 5%.
Everyone’s situation is different and it is important to consider payments, costs, and long term effects from any changes done.
It is worth having a conversation to discuss your mortgage details to confirm if staying with what you have or making changes is the right choice for you.
If you would like to have a discussion about your mortgage, please reach out anytime, I am happy to help