As the Bank of Canada test the water for the rate hike, we are expecting to see the lenders increase their offers. Spring should bring some nice rate promos.
The big question most ask is when should they jump ship from the variable over to the fixed. Tough question. It seems rates are a moving target so timing in the question. The rule we practice is the 1% spread. Should your current rate be less than 1% of the current fixed rate than the Variable is the option most will advise to choose.
Where will this go depends upon information few of us have. Speculation is really the best we have. If the objective it to fight inflation by increasing rates then higher rates will be our future. If the objective is to increase income and use the model “pay with your pay” and not credit then perhaps rates will remain lower or possible more affordable as relativity will play a roll.
The next rate review will be April 13, 2022.