The prime is rising now. It is safe to choose the fixed rate. From the history of prime rate in Bank of Canada, when the prime is decresing, variable rate is better than fixed rate, and vice versa.
The calculation showed that when the prime is raised to 6.5% over the next five years, compared with the fixed rate year by year, the variable rate can let you pay more than 4000 can$ (prime -0.75) with 200,000 mortgage.
So the wise choice is choosing one year fix, then when the rate is raised to around 5.5% then change to a variable one.
The calculation showed that when the prime is raised to 6.5% over the next five years, compared with the fixed rate year by year, the variable rate can let you pay more than 4000 can$ (prime -0.75) with 200,000 mortgage.
So the wise choice is choosing one year fix, then when the rate is raised to around 5.5% then change to a variable one.