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Old 2011-05-03, 03:40 PM
arigold arigold is offline
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Join Date: Nov 2009
Location: Ontario
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Quote:
Originally Posted by MortgageGuy View Post
If anyone hasn't heard, variable rate mortgage rates are on the rise, meaning most banks are DECREASING their discounting to Prime less -65%....
see article link below
http://www.canadianmortgagetrends.co...-pressure.html
Dan
"Banks have been making almost nothing on variables for a while now..."

So the banks aren't making enough money on variable rate mortgages...

This article alone tells me that taking a variable rate is a much better choice than a fixed... why else would banks call people with a variable rate and try to get them to switch to a fixed rate at... "Spreads are so poor that at least one lender is reportedly calling existing variable-rate clients and offering fixed rates well under the market as an incentive to lock in".

Again I know there are many factors that come into play when deciding between fixed vs variable but if you just look at the numbers how can you say that it is better to go fixed vs variable... pay 2.3% now and it might go up to 4% in a couple years or just be safe and pay 4% for the entire term... I know what I would choose...
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