Overheard a mortgage broker say variable rates are coming back in style

I was grabbing coffee last Tuesday and caught two guys at the next table talking about mortgages. One was a broker telling his buddy that after 5 years of fixed being the go-to, a bunch of big banks like RBC are starting to push variable again. He said something about the overnight rate stabilizing that made me rethink my own renewal coming up in June. Has anyone else looked into variable lately or is fixed still safer for your situation?

2 comments

2 Comments

the_emery27d ago

Oh man, that's wild! My buddy Steve just locked in a variable rate last month with Scotiabank and he's been texting me nonstop about it. He was so nervous making the switch because he's been fixed for like ten years, but his broker showed him the math and it saved him almost two hundred bucks a month compared to renewing fixed. His first payment just went through and he said it felt weirdly good seeing that lower number come out. I guess if the overnight rate really is done jumping around, variable might be worth a second look for people whose renewal is coming up soon.

finley_harris526d ago

Glad it worked out for Steve... variable is looking better now that rates are cooling off. Gotta give credit to his broker for running the numbers like that. Wish more people would do the math instead of just sticking with what they know.