Mortgage & Interest rate direction?
My mortgage renewal coming, I've picked variable the last 2 terms because I always believe interest rate would never go too high coz the government wouldn't let it as it would lead to too many people under water and a lot of unhappy voters.
I think this is now especially true with the depression we are heading into.
But, with the crazy amount of money our government is spending because of covid 19, would it lead to raising interest rate even if the government try to keep it down? (Generally high government spending & deficit lead to higher interest rate)
FYI, 5yr closed variable rate are at P-0.2 (2.25%) and fixed at 2.45%
This time I am more worried about picking variable because even if the government want to keep the rate low, the bank might raise their prime rate regardless?