Personal Finance

bank offering 5.4% fixed mortgage, should I accept it?

  • Last Updated:
  • Feb 10th, 2023 10:20 am
Tags:
[OP]
Jr. Member
Dec 2, 2014
119 posts
28 upvotes

bank offering 5.4% fixed mortgage, should I accept it?

My current rate is 5.9% lol

I am just not sure if this was last of interest rate hikes?
10 replies
Deal Fanatic
User avatar
Jul 13, 2014
5235 posts
2840 upvotes
Parry Sound
Rates will probably increase a few times before dropping near the end of the year

Or they won't... because nobody here can predict the future.


If you can afford it then take it but lock in for a shorter term. If you're willing to risk it then go with variable for a longer term.

What's your risk tolerance? No one but you can answer this.
This message has not been approved by The Office of The Mayor of Toronto.
Deal Fanatic
Jan 19, 2017
8057 posts
4712 upvotes
jonmarrow wrote: My current rate is 5.9% lol

I am just not sure if this was last of interest rate hikes?
If it is for 1 or 2 yrs, take it.
Deal Fanatic
Jan 19, 2017
8057 posts
4712 upvotes
jonmarrow wrote: 4 years
They are talking about rate will go down later this year or next year. If you can afford even higher rate for a short time in the near future, then go for floating rate or short term. 4 yrs is too long .
Sr. Member
Mar 17, 2008
510 posts
347 upvotes
Ontario
jonmarrow wrote: 4 years
If you can handle the payments I would definitely go with it. Nobody knows where interest rates are going. Here you can lock in your payments at least for 4 years. Go with what you know, not what might be.

I lived through an inflationary period in the late 70s. Back then our mortgage over a 14 year period was in the 9-10% range. Wouldn't we have loved to be offered 5.4%!
Deal Addict
User avatar
Sep 4, 2005
3572 posts
1495 upvotes
Toronto
freeagent wrote: If you can handle the payments I would definitely go with it. Nobody knows where interest rates are going. Here you can lock in your payments at least for 4 years. Go with what you know, not what might be.

I lived through an inflationary period in the late 70s. Back then our mortgage over a 14 year period was in the 9-10% range. Wouldn't we have loved to be offered 5.4%!
Could be 9-10% again by later this year. It could drop a bit to 4.9% early next year.
If we had crystal balls I'd be rich retired on a beach some where and not replying to RFD during working hours...


That being said OP 5.4% is a shitty rate for 4 year fixed.
You didn't post your location (or much information: primary or rental, mortgage amount, years left, refinancing, etc.) to allow us to better help you answer your question.

Go to this thread and look at the other responses people are making. Answer the same questions and a mortgage broker will get you a better rate.
https://forums.redflagdeals.com/officia ... ad-351105/
Deal Addict
Dec 7, 2011
3155 posts
1559 upvotes
Whitehorse
jonmarrow wrote: My current rate is 5.9% lol

I am just not sure if this was last of interest rate hikes?
If this is a new term and you have good credit, shop around. People's Bank advertisers 4.57% for 4 years, but AFAIK they don't go into markets with less than 20k residents. I'm not saying they are the cheapest or best, but it's better than the offer you have.
Deal Fanatic
User avatar
Jul 13, 2014
5235 posts
2840 upvotes
Parry Sound
ml88888888 wrote: They are talking about rate will go down later this year or next year. If you can afford even higher rate for a short time in the near future, then go for floating rate or short term. 4 yrs is too long .
"They" don't know anything. Especially if the "they" you're referring to is Trudeau and his administration.
This message has not been approved by The Office of The Mayor of Toronto.
[OP]
Jr. Member
Dec 2, 2014
119 posts
28 upvotes
sokolov wrote: If this is a new term and you have good credit, shop around. People's Bank advertisers 4.57% for 4 years, but AFAIK they don't go into markets with less than 20k residents. I'm not saying they are the cheapest or best, but it's better than the offer you have.
its a good offer for sure but there is penalty for breaking early with my current bank...

Top