Bought a variable rate mortgage in Calgary last fall against everyone's advice and it's actually been fine so far

After my broker warned me rates could jump again I went with a variable rate for our townhouse in Calgary and it's dropped three times since December, has anyone else seen variable out perform fixed recently?

2 comments

2 Comments

hart.parker28d ago

Has anyone actually run the numbers on what a fixed rate would've cost you by now versus what you've actually paid? I'm in the same boat with my variable in Calgary and I'm way ahead after these last three drops. People always bring up 2022 like it's the only thing that matters, but that was a once in a generation spike. Since then the Bank of Canada has been cutting more than raising. My buddy went fixed at 5.8% last year and he's kicking himself watching my rate drop to 4.2% now. The whole "banks aren't your friend" thing is true but that goes for fixed rates too - they price those things with plenty of cushion for themselves. Sometimes the risk pays off if you can handle the ups and downs.

averym8228d ago

In my experience, variable rate mortgages work great right up until they don't. It's like the weather here in Calgary, you can't trust the pattern to hold for long. A buddy of mine got burned back in '22 when rates shot up fast after a good run of cuts. Your luck might hold, but I've seen too many people get comfortable with the short term wins and forget that the bank's not your friend. Take the savings while you got em, but don't bet the house on it.