5-Year Fixed Mortgage Trap (Video)

9Comments

1. Tryn 2022年8月16日上午12:38

   Thank you Ed,
   一旦我重新检查了这些数字，那也是我倾斜的方式。我可以节省/投资差异，并希望能在春季之前对长期计划有更好的了解 - 希望一切都会随着通货膨胀/利率的增加而解决。如果我确实决定提早出售，它仍然是3个月的利息罚款，但利率较低。Since I don’t totally know if I will be in this property for 5 years, I think I’d rather get the savings now since I know there will be savings this year, and reevaluate the next step when it comes….I appreciate the response and insights.

   
   
   
2. 必威体育 2022年8月16日上午12:15

   Hi Tryn,

   我也要以3.39％的速度拿到。您对Prime -1.05％的变量报价为3.65％，到今年年底可能会浮动高达4.65％。即使明年开始下降，您未来12个月的平均利率也可能在4.25-4.5％之间。

   Your rate is a full 1% lower. which is significant.

   Having the 1.05% discount from prime for 4 more years will likely save you roughly .25%/year. 4 years of .25% is also a 1% savings, so about the same as your savings now. The difference is that you have to wait 5 years to get the savings you can get in 1 year.

   这些都是估计，可能是错误的。这些类型的决策是最好的，基于抵押期间最有可能的情况，然后进行数学。

   For me, the 1-year 3.39% is better, but not be a lot over that nice variable rate.

   Ed

   
   
   
3. Tryn on August 15, 2022 at 11:18 PM

   Thanks Ed,
   It is a difficult choice with no crystal ball! I’m not much of a gambler. I looked at the paperwork my lender sent me again and in fact they locked in more options than I originally thought. The 1yr fixed is actually 3.39 and a 2yr fixed 3.69, along with the variable prime-1.05. I wouldn’t do a fixed any longer that 2yrs (unless I had a 1.8% like a friend of mine snagged last November!). I don’t like giving up that 1.05 but the 3.39 looks real nice for the next year while we see what happens with the increases….and I sort out my life…..

   
   
   
4. 必威体育 on August 15, 2022 at 10:31 PM

   Hi Tyrn,

   鉴于您拥有的选项，我将在您的报价上以固定的1年来进行变量。今天两者都是很高的费率。明年的1年固定成本可能会比您的变量报价低。但是，您将有4年的变量率。在普通市场中，Prime的折扣为0.75-.90％，因此您相对可能在接下来的4年中节省.25％的利息。这可能是这里最引人注目的因素。

   Today, it looks like interest rates will likely rise another .75% in September and then another .25% in December. After that, it’s much less clear an depends on whether and how soon inflation comes down. Most likely, interest rates will start declining next year and be back to today’s levels in 1-2 years.

   通货膨胀应在明年可能下降，这应该导致降低利率 - 只要加拿大银行对通货膨胀仍然严重，并且不会对经济衰退或失业率进行局势思考。

   We think very high interest rates like 10% are very unlikely.

   Ed

   
   
   
5. 必威体育 on August 15, 2022 at 9:54 PM

   Hi Rocky,

   通常，采取可变或短期固定抵押贷款几乎总是更聪明的。在过去的70年中，他们在近100％的时间内节省了5年的资金。如果您想再融资或出售房屋，宽松的固定抵押贷款也使您有巨大的罚款风险。

   The only exception is if you are confident that the variable and short-term fixed will cost more over the 5 years. We think that is unlikely today.

   如今，一个变量约为4％（Prime -.7％），1年固定约为4.75％，而5年固定为4.6％至5.0％。看来9月的利率可能会再上涨0.75％，然后在12月再增加0.25％。在那之后，很清楚，取决于是否以及多久的通货膨胀率下降。最有可能的是，明年的利率将开始下降，并在1 - 2年内恢复今天的水平。

   在这种情况下，哪种选项在1年和5年以上的价格尚不明显，但是我们认为该变量很可能成本最低。

   由于利率不会上升，因此许多人对5年的固定感到更安全，但实际上您将自己锁定在监狱中。您可能付出更多，可以从5年的固定中获得巨大的罚款。

   通货膨胀应在明年可能下降，这应该导致降低利率 - 只要加拿大银行对通货膨胀仍然严重，并且不会对经济衰退或失业率进行局势思考。

   除非您在5年内获得较低的企业率，否则您几乎不应该长期固定。

   Ed

   
   
   
6. Tryn on July 28, 2022 at 7:41 PM

   为了续约，还挣扎着要走。我被预先批准为5年的Prime-1.05％（目前为3.7） - 在未来1 - 2年内最确定的增长，但谁知道多少，而通过错误，1年固定为3.89，尽管最初的预测是目前，2023年的利率似乎将被推到2024年，因此1年的续约可能会带来更高的利率。自我批准以来，2年和3年固定利率已大大提高。I had been leaning variable as there is potential I could sell (or port to a different property with better rental streams) I can write off some of the interest as a partial rental but if house prices drop significantly I don’t really want to sell at a loss but don’t want to be paying 6% on my mortgage and I don’t think I could swing 10% with recent increased life expenses and decreased income – especially if I want to maintain decent investment contributions. . . .

   
   
   
7. Maxb 2022年7月16日晚上9:54

   Totally unknown at this point.. The ability to lock in at super low rates are gone !!! Now, IMO, it’s an unknown which way is best.

   
   
   
8. 岩石 on July 15, 2022 at 6:23 PM

   您是否认为该变量仍然比2022年7月的修复更好？还是我们进入一个固定开始变得更有意义的环境。

   Thanks very much

   
   
   
9. Maxb 2020年9月20日下午5:34

   Usually, 5yr rates are more expensive, as it was in 2012…
   Move forward to 2020, and the cheapest rates are 5yr, obtainable at rates near 2%.. Have your thoughts changed ?