Personal Finance

Advice on Variable vs Locked in Mortgage -- or TD HELOC

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  • Sep 28th, 2010 12:38 am
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Newbie
Sep 23, 2010
1 posts
Cambridge

Advice on Variable vs Locked in Mortgage -- or TD HELOC

Mortgage is up in November, looking at a variable of 2.10% at ING, or a locked in 5 year rate with TD at 3.55%. Wondering if anyone who knows about this type of stuff can comment. I also have the option of a TD HELOC, with a prime rate. Only have about $140,000 left on a home worth roughly $250,000 and looking for the best options. Thanks

Dave
3 replies
Member
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Apr 1, 2009
406 posts
12 upvotes
DDM1979 wrote: Mortgage is up in November, looking at a variable of 2.10% at ING, or a locked in 5 year rate with TD at 3.55%. Wondering if anyone who knows about this type of stuff can comment. I also have the option of a TD HELOC, with a prime rate. Only have about $140,000 left on a home worth roughly $250,000 and looking for the best options. Thanks

Dave

This is a question of preference for you. No one can tell you exactly what the future has in store, so they can't tell you what interest rates will look like a year from now. The rule of thumb that you should use is the following:

Are you looking to pay down your mortgage aggressively by increasing your payments and using lump sum payments? A variable rate is probably better for you.

Are you looking to have steady payments that you continue to pay until your maturity date? A fixed rate is most likely the better choice for you.

If your asking if rates are going to go up or down? It shouldn't matter. How you manage your mortgage is the real thing that matters.
Jr. Member
User avatar
Jun 21, 2010
176 posts
6 upvotes
Mississauga
DDM1979 wrote: Mortgage is up in November, looking at a variable of 2.10% at ING, or a locked in 5 year rate with TD at 3.55%. Wondering if anyone who knows about this type of stuff can comment. I also have the option of a TD HELOC, with a prime rate. Only have about $140,000 left on a home worth roughly $250,000 and looking for the best options. Thanks

Dave

Get pre approvals now. Decide on variable or fixed before finalizing it. If you are not planning for a Tax deductible mortgage plan then why would you want a HELOC? If you want to pay your mortgage then why do you want to mortgage your home again thru HELOC?

In the mean time do some reading like -

http://www.financialpost.com/news/Varia ... story.html
http://blog.canadianmortgageadvisor.ca/ ... tgage.html
http://blog.canadianmortgageadvisor.ca/ ... ctive.html
Hello!! I'm a RFD newbie.
Deal Addict
Nov 26, 2005
3214 posts
387 upvotes
Vancouver
go for variable
always win

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