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Originally posted by santoshi

Hi,

what is the best going mortgage rate in Ontario?
What is good ---Fixed/Variable?

Thx,

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I personally believe that though the rates are important factor in deciding a mortgage product, you should always look in to your own circumstances and then decide about the best mortgage product which is suitable for you for your short and long term needs. Like if you plan to move out of the present home because of either change in job or want to sell the house for upgrading to a bigger house say in less than 4 years you do not wish a pay penalties by taking a 5 year mortgage. Moreover, when it comes to charging penalties for the fixed rates, the big banks (not all other mortgage lenders) use inflated posted rates to calculate IRD which could be exorbitant in comparison to penalties from a mono line lender such as First National, Street Capital or MCAP etc.

Regarding whether to choose variable or fixed rate then of course it would depend on your personal situation and preference but as the discounts in variable rates are not very great and the fixed rates are all time low, you may better go for a fixed rate product for now.

The fixed rates right now for the 3 year rate term is at 2.59% to 2.69% and for a 5 year fixed rate 2.89% to 2.99% depending on the lender and the pre payment privileges you choose. Hence, you should sit with a mortgage professional and get answers to all your questions and run various scenarios with him / her and then take an informed decision.

Take care and have a nice day.

Pramod Chopra
Mortgage Alliance
416-855-4100