Langley BC Real Estate - Locking in Fixed Rates or Keeping the Variable Rate - Are You Saving Money?

Canadians, just when you think that you are making the right decision for locking in your variable rate at such a low prime bank rate to be safe and secure, think again.

I have found an interesting article from Schulich School of Business and the IFID Centre, courtesy of TFP Investment Counsel Corp. 

...Canadians who can accurately predict the next move of the Bank of Canada – and decide to “lock in” their mortgage when the short rate is about to increase – are worse off on average, compared to those who float over the entire interest rate cycle. This is due to the fact that in order to properly time the mortgage “lock in” market one requires an ability to predict movements on both short and long term points on the yield curve, which is a skill that even David Dodge – the Governor of the Bank of Canada --- is unlikely to possess…

You know, I'm not an expert on these kinds of things but when there is information out there that opens your eyes to a way to save money over the long haul, I am all for it.  For more detailed information on this report visit: www.ifid.ca/pdf_newsletters/PFA_2007SEPT_Mortgage.pdf

Warmest Regards,

Andrew Szalontai - It's all about service
Langley BC Real Estate   -   778.862.5542
andrew@YourPerfectHome.ca
Remax Treeland Realty