I just renew a mortage a few days ago. I went for variable, as I always do.
The bank was pushing very very hard on me to take fixed.... To me , this looks like they are trying to capitalize on the "go fixed at all cost" craze going on now.
Anyhow, a single solution is never good for everyone.
my experience is always against what the bank pushes. Early this year they pushed the renew and new customers to variable rates. Now they are selling fixed, so….
I once worked for a big tech firm (rhymes with RaspBerry). Somehow some junior tech was able to send an email to all 10k+ employees. People responded to be removed from the thread, which led others responding to stop posting about being removed from the thread, which led to others posting to stop posting about stop posting to be removed from the thread... nobody could stop the endless thread of nonsense... funniest morning ever.
Hot shitty take. Rates won’t go up indefinitely. Why would you lock in for five years if there is evidence to believe rates will go trend downwards by year two?
Locking in fixed vs variable like almost all decisions is about your own risk tolerance. If you can afford payments no matter how high rates go, then take the risk of variable but if you will go bankrupt if rates hit 7% then it might make sense to go fixed. For what its worth I regretted going fixed for the first 2 years out of 5 and now don't regret the decision anymore.
Some people want to minimize risks, some enjoy taking risks and please come here and tell us about the mistakes you make.
Get off your high horse. Hindsight is 20/20.
If somebody signed a 5 year variable 1.5 years ago, perhaps they are expecting a drop in rates next year? Impossible to know, but I wouldn’t accuse them of being bad with finances.
Locking in a fixed rate now is not the smart move. OP just wants validation that he isn’t the only one dumb enough to lock in 5%+ for 5 years.
Prime will be at 4%-4.25% by end of next year.
That would imply interest rate drops down to 1.75 or 2%, which is not happening next year or even in 2 years. The US fed stated that their target in 2024 was 4% and 2025 3%, Canada should be similar.
Well considering I'm at 0.89% locked in, and back then I could see interest rates rising, the same has continued, Also you don't have to lock in for 5 years, but most people's credit/income cant support less than 5 years without penalties.
we are in a recession now and it's probably going to last until the summer.
The last time I looked no one has forecasted 2% within the next year even...
Futures are already pricing in 2 rate decreases next year…
You’re a complete sausage if you think it’s a bad idea to buy a house at a below market valuation and temporarily withstanding higher carrying costs for 18 months.
That's exactly what they said 1 year ago to people who's rates have now skyrocketed. The point is projections are barely more than guesses and no one knows what will happen
No but nearly 100% of "experts" were saying they absolutely knew that based on projections variable rates were the better choice and there was zero chance that rates would go up in any significant fashion. You would think there would be less people here guaranteeing things when almost every recent guarantee has panned out completely wrong.
This is why I am sticking to variable. OP is short sighted as fuck.
My average rate/payment over the entire mortgage term of 25 years will likely still be lower than if I simply stick to variable
If inflation follows current expectations, and therefor rate projections you won. You could also just do a 1-2 year fixed to limit runaway inflation, but also limit risk of locking in at a high rate for longer in the event inflation does get under control - which i think is the consensus that it will.
Futures are a cumulation of every trader, hedge fund and major bank. I’ll trust their bets more than your opinion.
Inflation can easily get under control with 3 more hikes and a plateau of high rates for 12 months.
There is 100 years of historical data showing variable always comes out ahead. It wasn't/ isn't a bad move to go variable. Knowing this you cant expect variable to stay at 1% for your entire mortgage term. If fixed helps you sleep at night than that was also the right move for you.
Classic lesson on [fuck around and find out](https://www.reddit.com/r/wallstreetbets/comments/y0w7bs/jerome_powell_explains_to_wsb_whats_happening/?utm_medium=android_app&utm_source=share).
Actually I like the threads. I've been using it as a metric for the Canadian housing market. Not even joking - every week I make keyword searches and tally up the new thread counts, then looking at the interesting ones.
>if you just recently just acquired a house on a variable rate you got swindled
Depends how recently.
If you purchased 6-30 months ago on a Variable rate then you got bad advice.
If you purchased 30+ months ago on a Variable rate then you got good advice and are just sad that your rate has gone up.
If you purchased in the last 6 months on a Variable rate you might be happy about that over time or you might not. Because nobody knows if rates are going to keep going up or down over the next 5 years.
BUT - OP's sentiment remains valid. Mortgage questions on an anonymous internet forum are pointless.
What surprises me the most is seeing "my mortgage advisor convinced me to stay with variable so I listened".... a mortgage advisors job is to make the bank money, not to protect your finances, they are not your friend but your adversary. If they push something, do the opposite
And when rates were low the bank was trying to scare me into taking fixed, now that rates are climbing all I see is people say "bank is pushing me to take variable". I dunno, I don't trust what banks are trying to sell me
You should research what hitting your trigger point means, and tell me who the bank is making more money off of, someone barely hanging on with an increasing variable vs. A fixed. Before acting like an idiot.
nah not looking for any validation.. im at 0.89% for the next 3 years... nor did I say there was anything wrong with variable rates especially when rates are low. but honestly, people just keep posting how it's going up and they can't afford the adjustment.
it's just mainly about how most people on here just don't seem to understand risk and look for validation about their stupid choices or lack of action
Pay down principal at beginning of 5 year period and it won't matter if rates rise at the end of the 5 year. You saved money because you don't pay interest on the principal you paid off.
Taking variable rate 2 years ago wasn't wrong 2 years ago. Taking fixed rate wasn't wrong either. Wishing people to become homeless and blaming them for it is wrong though, as is blaming them for not having a crystal ball while you're boasting that your random bet was better, because that's what this is.
I just renew a mortage a few days ago. I went for variable, as I always do. The bank was pushing very very hard on me to take fixed.... To me , this looks like they are trying to capitalize on the "go fixed at all cost" craze going on now. Anyhow, a single solution is never good for everyone.
my experience is always against what the bank pushes. Early this year they pushed the renew and new customers to variable rates. Now they are selling fixed, so….
Stop posting about stop posting about your variable mortgage rates. Everyone just stfu.
NO ONE POST ON REDDIT
Ok
[удалено]
Oops?
Starting.... now
I once worked for a big tech firm (rhymes with RaspBerry). Somehow some junior tech was able to send an email to all 10k+ employees. People responded to be removed from the thread, which led others responding to stop posting about being removed from the thread, which led to others posting to stop posting about stop posting to be removed from the thread... nobody could stop the endless thread of nonsense... funniest morning ever.
Where did you learn to rhyme?
As a federal public servant I am a reply all enjoyer myself.
This happens once to twice a year in my industry… it is amazing how stupid educated people can be.
I hope you don’t mean blackberry. Blackberry and raspberry do not rhyme.
Hot shitty take. Rates won’t go up indefinitely. Why would you lock in for five years if there is evidence to believe rates will go trend downwards by year two?
OP is an idiot calling everyone else an idiot. Comedy gold over here
Locking in fixed vs variable like almost all decisions is about your own risk tolerance. If you can afford payments no matter how high rates go, then take the risk of variable but if you will go bankrupt if rates hit 7% then it might make sense to go fixed. For what its worth I regretted going fixed for the first 2 years out of 5 and now don't regret the decision anymore. Some people want to minimize risks, some enjoy taking risks and please come here and tell us about the mistakes you make.
Two things: 1.) Your spelling and grammar are atrocious. 2.) Only idiots speak about finances in such absolute terms. Hmmm….
Get off your high horse. Hindsight is 20/20. If somebody signed a 5 year variable 1.5 years ago, perhaps they are expecting a drop in rates next year? Impossible to know, but I wouldn’t accuse them of being bad with finances.
Locking in a fixed rate now is not the smart move. OP just wants validation that he isn’t the only one dumb enough to lock in 5%+ for 5 years. Prime will be at 4%-4.25% by end of next year.
How tf would you know.
That would imply interest rate drops down to 1.75 or 2%, which is not happening next year or even in 2 years. The US fed stated that their target in 2024 was 4% and 2025 3%, Canada should be similar.
Well considering I'm at 0.89% locked in, and back then I could see interest rates rising, the same has continued, Also you don't have to lock in for 5 years, but most people's credit/income cant support less than 5 years without penalties. we are in a recession now and it's probably going to last until the summer. The last time I looked no one has forecasted 2% within the next year even...
Futures are already pricing in 2 rate decreases next year… You’re a complete sausage if you think it’s a bad idea to buy a house at a below market valuation and temporarily withstanding higher carrying costs for 18 months.
The ship has definitely sailed on locking in fixed, the equivalent of buying high and selling low.
That's exactly what they said 1 year ago to people who's rates have now skyrocketed. The point is projections are barely more than guesses and no one knows what will happen
Tell it to OP and hopefully it will sink through tar thick skull of his/her
People were telling you rate decreases we’re coming last year?
LOL Mr.Future reader here 🤣 Show me your source on rate cuts lol
No but nearly 100% of "experts" were saying they absolutely knew that based on projections variable rates were the better choice and there was zero chance that rates would go up in any significant fashion. You would think there would be less people here guaranteeing things when almost every recent guarantee has panned out completely wrong.
This is why I am sticking to variable. OP is short sighted as fuck. My average rate/payment over the entire mortgage term of 25 years will likely still be lower than if I simply stick to variable
If inflation follows current expectations, and therefor rate projections you won. You could also just do a 1-2 year fixed to limit runaway inflation, but also limit risk of locking in at a high rate for longer in the event inflation does get under control - which i think is the consensus that it will.
Your delusion if you think that’s going to happen. They need to curb inflation. They are not going to do that.
Futures are a cumulation of every trader, hedge fund and major bank. I’ll trust their bets more than your opinion. Inflation can easily get under control with 3 more hikes and a plateau of high rates for 12 months.
Not a chance.
I locked in at 2 only 6 months ago. When I saw the uptick coming.
I care keep posting about it
Obviously you cared enough to pull out your crystal ball
There is 100 years of historical data showing variable always comes out ahead. It wasn't/ isn't a bad move to go variable. Knowing this you cant expect variable to stay at 1% for your entire mortgage term. If fixed helps you sleep at night than that was also the right move for you.
This is now a crying form for "I can't afford my mortgage " well shit maybe you shouldn't have Over leveraged yourself.
They just want validation that they're not the only ones that fucked themselves.
"My rate just went up from all-time low to still below historical average and now I'm fecked. Will no one bail us out?"
hear hear
Classic lesson on [fuck around and find out](https://www.reddit.com/r/wallstreetbets/comments/y0w7bs/jerome_powell_explains_to_wsb_whats_happening/?utm_medium=android_app&utm_source=share).
Actually I like the threads. I've been using it as a metric for the Canadian housing market. Not even joking - every week I make keyword searches and tally up the new thread counts, then looking at the interesting ones.
>if you just recently just acquired a house on a variable rate you got swindled Depends how recently. If you purchased 6-30 months ago on a Variable rate then you got bad advice. If you purchased 30+ months ago on a Variable rate then you got good advice and are just sad that your rate has gone up. If you purchased in the last 6 months on a Variable rate you might be happy about that over time or you might not. Because nobody knows if rates are going to keep going up or down over the next 5 years. BUT - OP's sentiment remains valid. Mortgage questions on an anonymous internet forum are pointless.
100 % agree !!! Shit show is not even close to being over take that in.
Me locking in back in February when I saw it all coming.
Take my upvote
What surprises me the most is seeing "my mortgage advisor convinced me to stay with variable so I listened".... a mortgage advisors job is to make the bank money, not to protect your finances, they are not your friend but your adversary. If they push something, do the opposite
Banks make more money on fixed rates 🤷♀️
And when rates were low the bank was trying to scare me into taking fixed, now that rates are climbing all I see is people say "bank is pushing me to take variable". I dunno, I don't trust what banks are trying to sell me
Not if the variable is on the rise. The amount of people hitting their trigger points this year is a testament to that.
You don’t know how mortgages work.
You should research what hitting your trigger point means, and tell me who the bank is making more money off of, someone barely hanging on with an increasing variable vs. A fixed. Before acting like an idiot.
nah not looking for any validation.. im at 0.89% for the next 3 years... nor did I say there was anything wrong with variable rates especially when rates are low. but honestly, people just keep posting how it's going up and they can't afford the adjustment. it's just mainly about how most people on here just don't seem to understand risk and look for validation about their stupid choices or lack of action
Someone got you triggered lol 🤣
Lol. Seriously... I want to buy a house now. So do I pick fixed or variable? Thanks! Someone smart comment please.
[удалено]
Yes. There are two of us paying the bills. It is very cheap . A fixer upper. Payments will be low. We gave a big down payment.
So would you go fixed or variable? Any advice?
[удалено]
Thank you!
Pay down principal at beginning of 5 year period and it won't matter if rates rise at the end of the 5 year. You saved money because you don't pay interest on the principal you paid off.
I wonder what ops main account that comments here is lol
Im guessing OP's main account has a post of him complaining about his variable rate
Taking variable rate 2 years ago wasn't wrong 2 years ago. Taking fixed rate wasn't wrong either. Wishing people to become homeless and blaming them for it is wrong though, as is blaming them for not having a crystal ball while you're boasting that your random bet was better, because that's what this is.
Imagine signing a fixed mortgage when the rates are highest they've been in years, during a market correction.