With any kind of mortgage, you pay for what you get.
Variable might be open or closed, and you usually pay a higher rate for the flexibility of open.
Fixed rate protects you against rate hikes, but you pay for the protection (which is very likely less than what you paid, over long period of time, say 20 years).
Go to the website of Bank of Canada to study interest histories, you will understand what I mean.
Prime - 0.75 will save you a lot that any fixed rate plan. And some said they could get prime - 0.80, which is much better.
However, if you are planning to sell you house within 5 years, or to win a lottery very soon, you may ask for open plan, with a higher rate. Do a calculation, see how much more interest you will pay, and compare with how much panalty you would be charged under an closed plan.
In addition, if you are running a business and need a steady pace of expense, despite it may be more than necessary, you may choose a fixed plan.
Click on the URL to read more.
Variable might be open or closed, and you usually pay a higher rate for the flexibility of open.
Fixed rate protects you against rate hikes, but you pay for the protection (which is very likely less than what you paid, over long period of time, say 20 years).
Go to the website of Bank of Canada to study interest histories, you will understand what I mean.
Prime - 0.75 will save you a lot that any fixed rate plan. And some said they could get prime - 0.80, which is much better.
However, if you are planning to sell you house within 5 years, or to win a lottery very soon, you may ask for open plan, with a higher rate. Do a calculation, see how much more interest you will pay, and compare with how much panalty you would be charged under an closed plan.
In addition, if you are running a business and need a steady pace of expense, despite it may be more than necessary, you may choose a fixed plan.
Click on the URL to read more.