1.35 variable or 1.99 fixed both for 5 years with 283K - Help calculate
I am in the processes of signing up with Questrade for 5 years fixed at 1.99% - mortgage balance 283K
After reading a lot of posts about variable rates, interest rates mostly lockdown until 2023 etc. I think I should be considering variable rates.
I will be saving considerably on the interest payments and pay more towards the principal.
I will be paying $150 - $200 more per month than the required amount.
Also, I am currently with TD; they are trying to keep me by offering 2.05% for 5 years and 1.45% for variable.
My biggest concern is interest rates increases starting in 2023 (I read the government will have no raises until 2023). Will the variable rate catch up or cross the 1.99% fixed rate? How soon or how many interest rate increase would it take?
I couldn't figure out how to calculate it.
If there are increases; in the 5 year term; will I save more with a variable or fixed (in my scenario)?
Looking for help to understand it.
btw I have never carried a variable mortgage in the past.