Parity

par·​i·​ty | \ ˈper-ə-tē  , ˈpa-rə- \plural parities

Definition of parity

 : the quality or state of being equal or equivalent

Women have fought for parity with men in the workplace.

This is the topic of the day as we have reached the point where the fixed rates and the variable rates have reached parity. With the many increases to the Bank of Canada overnight lending rate, this has now given us a prime rate of 5.45. With the available discounts to prime of between prime -.55 to prime -.90 this takes us to pretty much parity with the fixed rate.

That being said you will still need to consider the various pro’s and con’s of each product before you make your final decision of where you want to go. Here are a few things to keep in mind.

The benefit of the fixed rate right now is that your payment will not change over the term (1-5 years) of your loan. The potential downside is a higher penalty if you were to break it prior to maturity. As for the variable rate, right now you are starting off pretty much the same as the fixed and it only comes with a 3 month interest penalty if you break it. However the downside is the talk from the Bank of Canada is that they are not done with the rate increases. At the end of the day pick the product that you are most comfortable with after seeing both sides.

Today I am thankful for a long bike ride with my friends this morning, deer on my lawn at 6am to eat the fallen apples and my wife’s eye for home decor deals.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here