mosaic99 wrote: ↑Dec 7th, 2017 7:40 pmHi,
Looking for some opinions and suggestions.
I'm currently on 5 year variable 2.40% and still have 3 more years left. Property is in BC, purchase price is 750k, current mortgage is 470K. Should I break the term and switch to a better rate or stay with the current one? What better rate could I get if switch? fix and variable. 3 and 5 year.
Thanks a lot
It's really hard to say no to variable these days considering how large the spreads are. Your lowest rate would be prime -1.19% (2.01%) if you were to make the switch. Your penalty would be about $3,400 (including discharge fee of an estimated $300). Factoring in this about, you would still save around $2,000 for the remaining 3 years of your mortgage. So switching does make sense.
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