If rates go high in 2-3 years, expect a economic boom.. Current job market does not reflect such a scenario in the next 2-3 years actually unless in-sourcing happens the economic future will get more and more difficult expect interest rates to remain low like what has happened in Japan for many years..

Quote:

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Originally posted by Blue_Peafowl


Hi dudewheresmycar

Well i respect your views, but i don't see Variable rate is deal anymore.

Rate will go up faster then we think ( why do u think bank started giving big discount rate on variable ?) - we all know bank do not lose money (they know that within 24 to 36 month rate will jump to about 5 % to 6 % - wait for another six months and we will see the changes.

Again, i am not an expert but if i have to chose then i will go for FIX at this moment.

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We all know that rate will jump but we don’t know yet how fast, may be increase will not be that higher in coming future but what IF increase is higher than expected ? (I still believe it will jump to 5% to 6% within 24 to 36 months). We are currently at 2.75%

Beside most of the people think that if interest rate rise one can lock in to a fixed rate. But, the banks will have raised the fixed rate higher than one could have gotten today.
Basically “pay less today on your VRM, pay more tomorrow on your FRM.”

Why take a chance? right now u can get 3.99 % for 5 year fix - only 2%( with VRM discount) different ( this will reduce every couple of months ) in six month it will be only 1.5 % difference and within 12 months around 1% different the let’s assume in two years it will be 0% different – so we will save money for beginning of years but then we still have long way to go.

My advice for first time home buyer to go with fix rate – it will give u piece of mind (once u are expert then take a risk)

Quote:

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Originally posted by dudewheresmycar


If rates go high in 2-3 years, expect a economic boom.. Current job market does not reflect such a scenario in the next 2-3 years actually unless in-sourcing happens the economic future will get more and more difficult expect interest rates to remain low like what has happened in Japan for many years..

Quote:

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Originally posted by Blue_Peafowl


Hi dudewheresmycar

Well i respect your views, but i don't see Variable rate is deal anymore.

Rate will go up faster then we think ( why do u think bank started giving big discount rate on variable ?) - we all know bank do not lose money (they know that within 24 to 36 month rate will jump to about 5 % to 6 % - wait for another six months and we will see the changes.

Again, i am not an expert but if i have to chose then i will go for FIX at this moment.

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

Prediction is a prediction, nothing for sure things will change...

So Better safe than sorry

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

Currently, the bond markets are pricing in very low inflation or even a deflation.
The yield curve is rather flat in the long run.
If you base your decisions on market direction, then VRM is the way to go.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

Please advise which bank is giving 5 years fixed for 3.99

TD told me best I get is 4.19%

Quote:

---

Originally posted by Blue_Peafowl

We all know that rate will jump but we don’t know yet how fast, may be increase will not be that higher in coming future but what IF increase is higher than expected ? (I still believe it will jump to 5% to 6% within 24 to 36 months). We are currently at 2.75%

Beside most of the people think that if interest rate rise one can lock in to a fixed rate. But, the banks will have raised the fixed rate higher than one could have gotten today.
Basically “pay less today on your VRM, pay more tomorrow on your FRM.”

Why take a chance? right now u can get 3.99 % for 5 year fix - only 2%( with VRM discount) different ( this will reduce every couple of months ) in six month it will be only 1.5 % difference and within 12 months around 1% different the let’s assume in two years it will be 0% different – so we will save money for beginning of years but then we still have long way to go.

My advice for first time home buyer to go with fix rate – it will give u piece of mind (once u are expert then take a risk)

Quote:

---

Originally posted by dudewheresmycar


If rates go high in 2-3 years, expect a economic boom.. Current job market does not reflect such a scenario in the next 2-3 years actually unless in-sourcing happens the economic future will get more and more difficult expect interest rates to remain low like what has happened in Japan for many years..

Quote:

---

Originally posted by Blue_Peafowl


Hi dudewheresmycar

Well i respect your views, but i don't see Variable rate is deal anymore.

Rate will go up faster then we think ( why do u think bank started giving big discount rate on variable ?) - we all know bank do not lose money (they know that within 24 to 36 month rate will jump to about 5 % to 6 % - wait for another six months and we will see the changes.

Again, i am not an expert but if i have to chose then i will go for FIX at this moment.

---

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5

Quote:

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Originally posted by birentoronto

Please advise which bank is giving 5 years fixed for 3.99

TD told me best I get is 4.19%

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Off topic:
It’s funny how people generalize terms and predictions.- if everyone taking variable then we should also go with that ( but we should remember each individual has different needs and capacity)

NOTE: Does the Media or (owned by govt) really gives us what we want to see, or rather what they want us to see? – so if you are risk taker go with VRM otherwise stick to fix so at least you don’t get into trouble later on.( as I said earlier, better safe then sorry)


Back to your query:
If you have good profile with your bank they will be able to give you good rate. The best i have got is 3.74%. – If not at least u go get 3.99%
TD is not flexible towards rates as others ...so forget it unless u hv very very strong profile with them.
Or else as PromodJi said, you can get it from other mortgage lenders (mcap, merix, canadiana, industrial alliance etc...) – for that you need to go to mortgage broker (I can help you with that if you need my service)

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)