Thread: Housing market
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Old Posted Sep 23, 2008, 3:36 PM
FairHamilton FairHamilton is offline
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Quote:
Originally Posted by MsMe View Post
I am also wondering if a variable rate mortgage is the route to go as well. Many times it isn't wise to get this but not with many changes in rates it can be a good way to go. There hasn't been much increase in mortgage rates the past while. My mortgage renews at the end of the year and I am thinking of taking the variable rate. A variable rate is about 4.750% for an open at the time.
We chose the variable rate, because I thought it was the way to go at least for the short-term. 6 months in and we've seen one .25pt drop in the rate and a few where it was expected by the Bank of Canada held firm. Our mortage is relatively small so that reduced much of the risk.

Personally, I don't think interest rates are going to increase by much in the next 2 years (but I'm no expert).

Ultimately, it depends on your tolerance for risk, and the size of your mortgage (i.e. potential savings vs. potential added expenses). If you like predictability then go fixed.
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