A potential workaround is to take a variable-rate mortgage now and then convert it to a fixed-rate loan after fixed rates move lower
A housing development in Cranberry Township, Pa., March 29. While it was possible in the past to get your lender’s prime lending rate minus one percentage point or more on a variable-rate mortgage, today’s discounts are smaller.are such a bummer if you’re a lender. With interest rates that track Bank of Canada rate changes, a variable-rate mortgage can be expected to cost steadily less for a borrower in the months ahead.
“You’re parking yourself,” said Tuli Parubets, a Toronto-based mortgage broker and believer in the strategy of going variable and planning to lock in later. “It’s a temporary placement.” “There’s still a large difference between fixed and variable and I find most people prefer to have immediate savings/lower payment upfront versus waiting for rates to drop,” Victor Tran, a mortgage agent with TMG The Mortgage Group, said in an e-mail.mortgages may also be suffering from PR issues related to the way they left homeowners exposed when interest rates soared a couple of years ago. But with inflation receding, these are different times.
Rate Lender Cent Week Today Rates Mortgages Bank Of Canada Tuli Parubets Victor Tran
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