Personal Finance

Fixed Vs. variable mortgage rates

  • Last Updated:
  • Aug 4th, 2020 1:28 am
[OP]
Jr. Member
Jun 17, 2017
116 posts
12 upvotes

Fixed Vs. variable mortgage rates

Signed an CIBC 5 years fixed mortgage just before the pandemic, now the variable rate is much lower... Any way I can switch over the variable? Thanx.
6 replies
Deal Addict
User avatar
Nov 14, 2003
4115 posts
2382 upvotes
Gotham
That is unfortunate timing. I assume there is an early payoff fee. Talk to your banker to figure out the options.
Member
Mar 7, 2011
395 posts
243 upvotes
Ottawa
Most likely there'll be hefty penalty if you're early in your term. Best to contact your bank and find out how much the penalty would be.
Sr. Member
Aug 20, 2015
502 posts
298 upvotes
Toronto
You can switch to variable but fixed mortgages usually have hefty penalty for breaking early in the mortgage which wouldn't be worth it.

You got fixed for a reason, so you wouldn't be impacted by interest rate changes (good or bad).
Newbie
Aug 27, 2012
43 posts
30 upvotes
Downtown Canada
the break fees on the first year of a five year fixed fixed shouldn't be bad. I would talk to CIBC to see how much it is and whether it is worth breaking it
Deal Addict
Apr 5, 2016
4479 posts
3054 upvotes
Calgary/Vancouver
TrainInsane wrote: the break fees on the first year of a five year fixed fixed shouldn't be bad. I would talk to CIBC to see how much it is and whether it is worth breaking it
Typically it isn't because prime rate don't change, but as prime rate went down twice, penalties right now are crazy expensive. Still good to talk to CIBC and see how much it is. Might even be worth to just break the term for the flexibility.
Current Fido and Rogers customer.
Ex Koodo customer.

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