My mortgage for a condo townhouse in Canada is up for renewal (I live in the US, this is a rental property). With Bank of Canada holding on the rate today. Which option should I go with, principal is $250k CAD:
- 2 year fixed: 4.24%
- 3 year fixed: 4.04%
- 3 year variable: 4.20%

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I’d bet on the 3-year fixed rate of 4.04%. I can’t imagine rates are going to fall drastically lower in light of inflation in the Northwestern Hemisphere unless if we have another Covid type event where central banks around the world cut rates to nearly 0.

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I don’t think we’re going to see rates below 4% anytime in the next three years—so why not take advantage of the current environment?

With these tariffs, inflation is likely to stay elevated on this side of the globe, and the only way central banks can fight that is by keeping benchmark rates high. Worst-case scenario? They hike rates further, pushing us closer to “stagflation.”

But hey, what do I know—I’m no better than the clowns on business media. Or in government, for that matter.

helpful

For a .2% difference, I’d go for 3 year fixed. At least you know what your payment will be for the next 3 years

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For 0.16% extra i’m inclined for variable.

I’m curious though how are you getting these rates. Very few banks actually offer mortgages for these situations. I’m in the same spot. TD agreed to finance though rates are slightly higher than what you posted here

I’m also a citizen. Which bank did you use?

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