Most of us are familiar with the classic song by The Clash ” Should I stay or should I go”. Well right now that applies to those of us in variable rate mortgages. There has been a lot of nervousness about staying in a variable rate and riding out the Bank of Canada rate announcements or bailing and going for a fixed rate.
There are a few things that you should look at if you are deciding to convert to a fixed rate.
- What is your current discount to the prime rate, and is the rate for a comparable fixed rate higher than what you are currently paying.
- Look at your mortgage statement and see if you are still paying interest & principal. If you’re not because of the recent rate increases it may be time to either increase your