Should I Take This Renewal?
I just got an email from my bank (BNS) where I have my mortgage from with a chance to early early renew
2.59% - 5 year fixed
Maturity - 1 year and 10 months
Outstanding amount - 140K
Total Term Left - 10 years
Term - 2.2421% new 5 year fixed.
I know interest rates will most likely be for the next 2 years so in theory I should be able to get a pretty low rate once my 5 years ends. However since it is almost 2 years earlier maybe it is worth it since I am saving $600 over those 2 years.
I looked into breaking my contract and going to like tangerine or something for their 1.99% fixed but I think with the fees it did not make really that much sense (since I would have to pay that differential amount since my rate is higher than currently) but I would have to calculate it again.
Another concern of mine right now I can't say for certain that I will be at my current home for the next 5 years. I was hoping to actually buy a new place next year but with covid and such I have no clue if that is even remotely going to happen. I would first try rent out my place if possible but all of this depends on what my company decides with remote work(ie can I move further away where I could keep an investment property but also buy a new place).
Also if someone can recommend me a mortgage breaking fee calculator that takes in account rate differential that would be great too.