Archive | 2.33

Mortgage Interest Rates

6 Sep

My pre-construction condo is finishing up by December 2013.  So it is time to shop around for the best Mortgage rate!  But I am having a hard time deciding between fixed or variable rates.

I’ve been pre-approved for a mortgage from CIBC and RBC.  Apparently, both banks do not offer any variable rates for less than 5 yrs.   For comparison purposes, I’ve also added in ING rates that I got from their website.   I’ll be paying a minimum 20% of the purchase price.

Fixed 3 yr 3.19% 3.09%
Fixed 4 yr 3.39% 3.29%
Fixed 5 yr 3.29% 3.59% 3.79%
Variable 5 yr 2.60% 2.60% 2.75%

(I still have to find out the rates from CIBC for fixed 3 yr and 4 yr rates.)

Rates are at its all time lows.  I’m kind of leaning towards the variable rate, but I might get screwed over if rates start to rise over the next few years.  A lot of people are saying to lock in your rates before it increases…

I need to find out if certain mortgages are breakable without much penalty.  Decision, decisions!