thanks for helping whirlwinds ! Can you elaborate on what you mean when you say "the after tax impact is bigger by going variable." ?whirlwinds wrote: ↑ If you fix the 300k portion you will be subject to prepayment rules and the line is not readvanceable. It boils down to whether you want to save the 1% or have flexibility in repayment and re borrowing. If you fix a larger amount you can also negotiate the rate a bit more but at this level i would say the after tax impact is bigger by going variable.
From my perspective 1% less in interest is major, is there something i am missing here ?
FYI, i dont really care about flexibility in repayment since i dont plan to repay this HELOC faster. In my specific context, borrowing against my residence is simply a way to make the interest deductibles.
thanks again !