Quote:
Originally Posted by Liquid_o2
Wondering if you guys can provide some advice.
Our condo is up for mortgage renewal in November of this year. Coming to the point where we can break the mortgage with limited penalty.
We are hoping to find something bigger in the next year or two (if we can actually find anything in our price range of course). Should we be locking in a fixed rate for another 5 years with a clause that we can transfer the mortgage and rate over to a new property? Or should we be going variable as it provides more flexibility if we move?
I'll be talking to my mortgage broker soon, but I want to be better informed.
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I would recommend taking a serious look at your finances and talk to an expert.
Off the top of my head, you are better off with signing a shorter mortgage vs a 5 year mortgage if you plan on selling in a year or 2.
Say you do wait and move in 2 years, you'll still have 3 years left on the 5 year mortgage and the penalty will be quite high.
Sign a 1 or 2 year mortgage and you should be better off in that instance if you go with a fixed rate mortgage.