Posts from the ‘variable rate mortgage’ Tag

November 24, 2010

Open vs. Closed Mortgages: The Surprising Winner Is…

Home-equity lines-of-credit (HELOCs) and open variable-rate mortgages are tempting to borrowers because they can be paid off with no penalty. Are they worth it? Using current interest rates, today's post puts the numbers to the test and compares the cost of open- vs. closed-term financing solutions. As you will see, the results are both surprising and definitive.
April 14, 2010

The Variable-rate Mortgage – Temptress to Us All

Ahh, the variable rate mortgage, temptress to us all. It offers you the lowest borrowing cost in exchange for the security of your locked-in rate. History shows that variable has been the right call for Canadians about 90% of the time, but for the other 10% of the time, history also shows you would have lost more vs. fixed when you bet wrong, than you on average would have saved vs. fixed when you bet right. So it’s the right call, except when it isn’t. And there’s the rub. I am an independent full-time mortgage broker and industry insider who helps Canadians from coast to coast. If you are purchasing, refinancing or renewing your mortgage, contact me or apply for a Mortgage Check-up to obtain the best available rates and terms.