ON Canada, Sept 11, 2011 - Current fixed rates are at the lowest and this makes housing more affordable. Variable rates on the other hand is around 2.4% while fixed are at 3.19%. The difference between the two rates is low or $ 39 for 25 years for each 100K of loan. Having the peace of mind of equal payments vs. low and volatile rates, the fixed rate may be a better option at this point in time. It could change next month. Email me at victor_catalan@centum.ca if you need further assistance on this matter.

There are many reasons to keep your variable rate mortgage if you have a rate of Prime - 0.50% (or less). If you have a mortgage at Prime 0.25% (or higher), now is a good time to lock in at a fixed rate if you are being offered a 5-year fixed rate of about 4.19%. Alternatively, you could keep your variable rate mortgage and increase your payments to the same amount as they would be as if you had a higher fixed rate. this way you will pay down your Principal balance quickly. James Shinners. Mortgage Managers 1-877-996-6677. www.mortgagemanagers.ca

It looks like mortgages are going up as we come close to the end of the year. Many expect that the rates will keep going up so it is strongly recommended to lock your mortgage if you are planing to stay at the residence you purchased for some time. If you lock your mortgage today for a 5 year fixed you can still find a rate as low as 3.5% which is records low.

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We were renting but now the house is up for sale. so we were sent to a broker by our landlords real estate agent who offered us a rate l plus prime. she called it a variable fixed. she said the prime was 1%. so altogether our rate would be 4. something. she said this would make our payments low. i told her i wanted a fixed low rate but she said the variable fixed prime is better. im a first time home owner so i just dont want to get screwed in a few years and not be able to pay my morgage like in the 80s. in canada b.c.

You are more correct than your broker. While rates are low now, there is every possibility that if the recession ends, central banks will raise their rates, which trickles down to consumer rates, such as mortgages and the Prime. Ask your broker to provide you with quotes on 30-year fixed rates also and compare the payments. I doubt you will find much difference since fixed rates are also low. If the broker balks, walk away and find another broker - there are plenty out there and they all want your business.

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I have a morgage with the cibc and it's on "better than prime" morgage, 5yrs. closed at 4.500% and it's close to the end of this term soon in early july. i need advice to make the right choice to pay off quick, as there are so many financial institute offering their package for renewal. not that i don't trust the present one right now. i've already paid off more than 65% of my principal balance and have 6yrs. to go. right now i'm being offered the same term that i have now with 5yrs. closed, variable rate 3.740% for the first initial 9months, then 4.500% thereafter untill the end of that term. that means i still have a year to pay off after that. any idea if any other institute that might be better than the cibc offer. i've already planned to finish off the whole morgage within the next 5yrs. by doing regular weekly payments and so on. just wanna know more details before i do my new contract. thanks!

I have extremely limited experience with this, but as no other answer has really scratched the surface I'd say that you should consult with a reputable mortgage broker in your area. You have your banks offer in hand, give the broker a chance to find something that suits you better. If he/she is unable to beat it then you've set your mind at ease that you have the best deal and all it has cost you is a single credit inquiry. If they do find a better deal then you've saved yourself some money. Hope this was some help.

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For example, lets say on your job you had stold something and a costumer saw it and went and told the manager of the job. now the manager call you in for questioning. now lets say you have bills that are far behind like morgage and car notes, you don't want to risk telling the truth, because if you did, then that means the end of your job, and you know that you have to have your job in order to survive, so what would you do? tell the truth and get fired, meaning you won't have anymore money coming in for bills and such (looking for another job would take a long time because of the economy.), or tell a lie, saying you didn't steal anything (but knowing you did) to bail you out from getting fired, because the manager would have no variable proof, but only "he say, she say" issue? this is just a thought, not something that actually happen.

This is exactly why there are no conditions set in the commandments. The commandment does not say, "Thou shalt not lie UNLESS..." Jas 1:12 Blessed is the man that endureth temptation: for when he is tried, he shall receive the crown of life, which the Lord hath promised to them that love him. Jas 1:13 Let no man say when he is tempted, I am tempted of God: for God cannot be tempted with evil, neither tempteth he any man: Jas 1:14 But every man is tempted, when he is drawn away of his own lust, and enticed. Jas 1:15 Then when lust hath conceived, it bringeth forth sin: and sin, when it is finished, bringeth forth death. Jas 1:16 Do not err, my beloved brethren.

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What are they doing bringing the base rate down, its alright for people with trackers/variable morgages. but what about people with fixed morgages at 6-7%. they will be a lot worse off, in real terms and will not see any reductions because they are tied-in. and because of the rates coming down "supposedly" to around 1%. it will be disastrous for their savings, if they have any. what do you think of this "double whammy" for fixed rate morgage payers with little savings? i am not amused. secondly, if they bring interest rates down further this will make people go on a spending-spree again and when/if the conservatives get into power they will "whack" the rates up to nearly double figures (looking after their wealthy supporters savings) this then will leave these people who go on a feel-good spending spree to pay an heavier price for their borrowing etc. what are your feelings on these two issues please.

Suggest you read the robert peston blogs on the bbc business section on the bbc website for an in depth look at why rates have been lowered. As for fixed rate mortgages, well they can't have it both ways. People signed up for them in case rates went up, jumping up and down because they are supposed to come down is just throwing the toys out of pram. Rates go up as well as down, thats the gamble. If rates were rising lots the fixed raters would be all smug wouldn't they.