Quote:
Originally Posted by Gerbs
80% of friends from a non finance background took variable too. Their ecision was 1.29% variable or 1.49 - 1.59% fixed.
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When I took my mortgage (Feb 2021) the spread was 0.99% variable or 1.49% fixed.
I regretted taking fixed for a while as between Dec 2020 (offer accepted) and late 2021 home prices went completely insane, if I was variable it would have been real tempting to flip it rather than invest effort in renovations. The penalty would've been $40-50K.
Obviously happy with fixed now, but yeah it's basically a cointoss - I am lucky. Couldn't have predicted this and I could just as easily have been unhappy. A lot of advice at the time was to go variable and with 50 points spread and lower penalty (and a hot hot real estate market) I could see that making sense then too.