Quote:
Originally Posted by Liquid_o2
Anyone know what approximate fixed rates are right now for renewals? My mortgage broker is trying to get me into a 2.79% 5-year fixed with First National. Need flexibility as we will likely need to break or transfer our mortgage to a new property in the next few years.
The deal doesn't seem that attractive, especially to break my current mortgage with TD (more than six months out, but less than a year, so we would have to pay 3 months interest).
Am I getting a raw deal?
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Go with a variable. You're looking at around a 1.4% spread between what your broker quoted you and a variable un-insured mortgage at one of the big banks right now.
Since you're renewing as well, get a HELOC/re-advanceable mortgage so you can draw upon it when you need to close on your next home. You don't know what the market will look like when it's time, but I would bet that the market for ground-oriented homes will continue to face supply constraints, which means that you will need as much flexibility in terms of financing and closing dates.