Predictions on Prime Rate? (mortgage-related)

Right now, most definitely do fixed. The difference between fixed and variable is way too small to worth the risk with variable. If you were looking for a mortgage a year ago or before, then variable had good discount (say, P-0.9) which made it worthwhile, but not now.

I can't stress people more about this... It's not about what rate is the best or what rate is the lowest between fixed rates & variable rates, it's about understanding what you are getting into and how the penalty works and what are your options if you sell your property before the end of the term.

Variable/closed mortgage always give you a 3-months interest penalty, usually provide you with the lowest penalty after any open mortgages.
Fixed mortgage are complicated calculation based on the remaining interest of your mortgage and the bank's posted rate for your remaining term.
Most banks will offer you a portable mortgage that let you move your existing mortgage to another property as long as it's equal amount or a bigger mortgage.

Regardless if you choose variable or fixed, your payments stay the same for the rest of the term, it's just a matter of how much capital will go against your mortgage on variable rates. If the prime rate goes up, you pay more toward the interest, if the prime rate goes down, you pay more toward the capital.

skunkyjosh wrote: ↑I can't stress people more about this... It's not about what rate is the best or what rate is the lowest between fixed rates & variable rates, it's about understanding what you are getting into and how the penalty works and what are your options if you sell your property before the end of the term.

Variable/closed mortgage always give you a 3-months interest penalty, usually provide you with the lowest penalty after any open mortgages.
Fixed mortgage are complicated calculation based on the remaining interest of your mortgage and the bank's posted rate for your remaining term.
Most banks will offer you a portable mortgage that let you move your existing mortgage to another property as long as it's equal amount or a bigger mortgage.

Regardless if you choose variable or fixed, your payments stay the same for the rest of the term, it's just a matter of how much capital will go against your mortgage on variable rates. If the prime rate goes up, you pay more toward the interest, if the prime rate goes down, you pay more toward the capital.

Tx, luckily I'm aware of those factors. So, everything else being equal, I'm looking forward to comments/predictions on the prime rate.

Prime rate will stay the same. Don't worry. Banks already fighting against each others and the prime rate is not even moving.
If it moves, it's down again.

Stay the same most likely. I highly doubt it'll go up. All levels of government don't want the RE party to end.

My vote is for prime staying the same in 2016. Virtual lock that rate won't move on April 13th so next 5 announcements are key: inflation (which is one of drivers of BOC rate) isn't going to change that drastically in next 7 months. Bonus prediction, no rate increases in 2017 either!

No body knows for sure, but it is highly likely that the rates will stay the same OR go lower. Several European countries have negative interest rate and to think that we won't go negative would be quite naiive.