Should I switch to fixed?

[resjudicata]

@rcflyer23 I like steep drops

 

[dlang10]

@dpierre No matter what you think rates will do, you don’t know. If warren buffet doesn’t bet on interest rates I wouldn’t recommend it either. Go with what makes you more comfortable

 

[inuyasha8629]

@dpierre I just switched to fixed 3 months ago (5.40%) whatever you do we are all fucked living in Canada. Good luck

 

[hassack]

@inuyasha8629 Wow, that's very high. I got mine renewed at 5.02% for 3yrs this month. The rate was after the Jun rate hike, otherwise it could be 4.8%.

 

[pepsah]

@dpierre it's already too late at this point to switch though

 

[samwoods622]

@pepsah I thought the same when fixed was 4.5.

 

[resjudicata]

@pepsah Why?

 

[danialclarcke]

@resjudicata Debt crisis. If they raise rates too high then the economy dies

 

[rob1288]

@pepsah Unless it goes to 10%

 

[allyce]

@dpierre There’s a reason banks are calling people to lock I a fixed (hunt: they aren’t trying to do you a favour)

 

[relling]

@allyce Because they don't want to deal with people with 150 year amortizations and a bunch of foreclosures.

They did not beat inflation yet and rate hikes are going to speed up again.

 

[allyce]

@relling If this were the case they could just offer that deal at any time.

 

[ambassemma]

@dpierre I would jump on it.

Which bank is offering this rate? Checked in with my broker today and quoted 5.3 for 5yr and 5.8 for 3yr.

 

[ndilowe]

@dpierre Bank prime is 6.95, you got an artificially elevated prime. Only bank I know that does that is TD.

 

[butterflyjo]

@dpierre No. Eventually rates will revert to the mean. Look at bond yields in the last 40 years. Every time there’s a huge spike, it crashes. I have no illusions the same won’t happen again.

 

[resjudicata]

@butterflyjo Sooo uuhhh, what is the mean?

 

[silvastrings]

@resjudicata Exactly. People don’t realize that rates were at historic lows not to long ago. That wasn’t the mean.

 

[resjudicata]

@silvastrings Uhhh, no….I was literally asking….what is the mean, like what’s the number.

 

[papabear101]

@silvastrings And just because the rates will likely be lower than they currently are at some point in the future, doesn't necessarily mean that you can carry the higher costs you might see in the interim.

 

[danialclarcke]

@dpierre I wouldn't. They can't raise rates much more without full-on killing the economy. It's not a good idea to fix at the top of rates. That's the equivalent of buy high sell low.

The banks prey on over leveredged Canadians. Those who get scared and act irrationally. Those who are not financially educated