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Mortgage Broker News | 26 Sep 2013, 12:00 AM Agree 0
The Bank of Canada may hold off on hiking rates until the U.S. Federal Reserve decides to raise its own, argues Fidelity Investments, giving brokers yet more food for thought on when their market will finally cool down.
  • | 27 Sep 2013, 07:27 AM Agree 0
    So does this mean that variable rate mortgages are the way to go for our clients today? Provided that a borrower qualifies and displays an ability to absorb potential increases to the prime rate in the future would anybody not recommend a variable rate mortgage today?
  • Dustan Woodhouse | 27 Sep 2013, 07:41 AM Agree 0
    If one reviews a 25 yr chart, the variable has always been the better play. Factor in prepayment penalty differences and the stats on broken fixed rate terms and the win for Variable clients is that much more significant.

    Is today the day that 25+ yrs of history does a u-turn? I am not clever as to call that, so yes I will continue to lean towards variable with the balance of additional factors considered.

    Make the 5yr fixed payment on the VRM and one truly benefits, point being to choose the variable for the low rate & flexibility, not the low payment.
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