Any mortgage experts here...bankers?

[1HotBoss70]

My mortgage is coming due...it currently is a variable rate open mortgage and the last few meetings of the bank of canada the prime lending rate has increased thus increasing my rate...my personal banker has recommended a 5 yr closed mortgage at 3.89% but I am not sure on this.... my current rate of 2.5%....

Any help or suggestions

Thanks

[johnliley]

Originally Posted by 1HotBoss70

My mortgage is coming due...it currently is a variable rate open mortgage and the last few meetings of the bank of canada the prime lending rate has increased thus increasing my rate...my personal banker has recommended a 5 yr closed mortgage at 3.89% but I am not sure on this.... my current rate of 2.5%....

Any help or suggestions

Thanks

Sorry only licensed in Utah.....

JL

[walds11]

I would lock into a conventional fixed rate mortgage. Rates are at all-time lows.

[Sherwooddavid]

If you have the option of locking in at any time I would stick with the variable rate and lock in when rates start to rise.
I thought I heard that the BOC probably won't raise rates any more until next fall because the economy is growing at a slower pace than expected so you can probably stick with the variable rate a little longer.
After saying that a 3.89% is a very good rate and you can't go wrong locking in now.

[JUSTROLEXES]

Originally Posted by 1HotBoss70

My mortgage is coming due...it currently is a variable rate open mortgage and the last few meetings of the bank of canada the prime lending rate has increased thus increasing my rate...my personal banker has recommended a 5 yr closed mortgage at 3.89% but I am not sure on this.... my current rate of 2.5%....

Any help or suggestions

Thanks

To answer you better, I would like to know how long you're planning to stay in the house? In you are planning to be there for 30 years+ I would start the refinance process and have your broker lock it on a good day and aslo I would try to do a buy down on the rate " you would have to pay a point or so and get a lower rate"
If you're not planning to stay there for a long time you can Lock a 5 years ARM
All the Best

[toph]

cant speak for canada specifically but you have UK and other counbtries with very low interst rates - lowest ever. banks are losing fortunes on interest rates alone. it cannot last. i would take your fixed rate offer now as rates will sky rocket i am pretty sure in the next year or 2

[jeremyam]

BMO and TD have lowered their five year fixed by about 15 basis points, may want to have a look at these two lenders.

[drtooth73]

I am getting a fixed 3.875% re-fi, no out of pockets costs.