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.

CIBC RBC ING
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!

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4 Responses to “Mortgage Interest Rates”

  1. Alex September 7, 2013 at 2.33 #

    Pretty low rates still! One question – if you are shopping for 3 year fixed rate loans, I assume you nearly have the funds to pay 100 percent cash…..have you thought about forgoing the mortgage completely?

    • agentfang September 7, 2013 at 2.33 #

      I wish I had enough cash on hand to pay it all off! But that’s not the case. I am considering the 3 yr fixed rate as I might start a family within that time frame where I will need the cash flow. This is an investment property that I will rent out.

  2. Div-Web September 7, 2013 at 2.33 #

    I always liked this about ING:

    “throughout the year, you can make lump sum payments totaling up to 25% of your original mortgage amount – on any regular payment date. No waiting for the anniversary date”

    Should help you eat away at that mortgage faster.

    • agentfang September 7, 2013 at 2.33 #

      Yes, I do most of my banking with ING so it would be ideal to just have an un-mortgage with the flexibility of lump sum payment. Even though, I don’t have much to throw at them.

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