Take advantage of historical low fixed rates
Although my previous post suggested that variable rate might be better, things changed rapidly.
With Bank of Canada raised Prime rate three times so far and fixed rates dropped dramatically, the gap between best 5-year fixed (3.29%) and variable rate (2.25%) is much smaller.
It is only about 1% difference. Since economy is recovering, it is for sure variable rate will keep going up steadily in next 3 years and will go past current 5 year fixed 3.29%.
So it is rare opportunity to lock into 5 year fixed rate. You will be worry free for the next 5 years.
This promotional rate might be gone any time soon. So act quickly.
Posted by Warren Zheng
on October 7, 2010