I will make this quick as there is sure to be more discussion about this topic in the media over the coming weeks and months. It looks like the debate over what mortgage product is better for consumers “fixed vs. variable” is making a come back.
Here is an excerpt from MortgageBrokerNews.ca that is sure to help fuel the debate:
Last year’s series of rate drops shifted consumers’ historical preference for variable to fixed mortgages, with as much as 80 per cent of consumers looking for fixed rates. However, if rates continue to hold or slide, we could see the pendulum swing back. In fact, a significant number of economists themselves recently re-adjusted their forecasts for a hike in the overnight rate, suggesting it could as late as 2015, given the world economy.Such a scenario would allow borrowers ample cushion to realize saving on a variable mortgage even if rates inch upwards further down the roadFixed vs. Variable Rate Mortgages>. Signs are now seeing signs that variable rates are more and more attractive to borrowers – and not just the risk-seekers.