Fixed mortgage rates have increased. But for home buyers willing to gamble, variables are getting cheaper
Dave Currie, an agent with MonsterMortgage.ca, said the widening spread differential between fixed and variable products is another good reason to go with variable. He’s now seeing spreads of as much as 0.65 of a percentage point. Up until about six weeks ago, the spread between fixed and variable was essentially zero.
“We’re steering people into variables more than ever before,” Mr. Currie said, adding that he’s been discussing with some clients the possibility of breaking their fixed terms and going with variable instead. The cost of breaking existing fixed mortgages tends to fall as prevailing fixed rates rise.