Real Estate

Mortgage rate at switchover - variable to fixed before 5-year term is up

  • Last Updated:
  • Oct 9th, 2020 4:41 pm

Poll: Fixed or variable?

  • Total votes: 7. You have voted on this poll.
Fixed (1.87%; 2020-2025)
Variable (1.75%; 2020-2023ish) then switch to Fixed (2023ish to 2028)

Poll ended at Oct 28th, 2020 7:53 pm

Jr. Member
Aug 31, 2010
189 posts

Mortgage rate at switchover - variable to fixed before 5-year term is up

For those of you who switched out of your variable term before it ended, into a fixed rate:
What fixed rate did you switch into, and what was the publicly posted rate?
I'm leaning towards a variable mortgage while rates are low, then switching into a fixed term when rates go up.

This will be with RBC. With them there will not be penalties to switch into fixed (no three-month penalty, no nothing).
But I'm aware that I may be at the mercy of their publicly posted rates.

For contrast, the unadvertised variable rate is 1.75%, unadvertised fixed is 1.87%. The posted fixed rate is 4.79%.
Another consideration: rates could be lower in 2023 than in 2025.

Hypothetical scenario 1:
2020: variable
2021: variable
2022: variable
2023: switch to fixed
2023-2028: fixed

Scenario 2:
2020-2025: fixed

Term is 5-year closed for all mortgages.
University student by day, contester during study breaks.

Wins list, from May 17th, 2011 and earlier: ... st12091767
1 reply
Jan 15, 2017
87 posts
Both pretty crummy rates. Depending on your mortgage statement size, whether it's insured or not, original purchase price you should be able to get around 1.65% variable or 1.6-1.8% fixed. Reach out to a broker (I am not one)