VAR OR FIX? DEC/2008 HERE IS A GOOD DISCUSSION:::

In April of 2001 there was a study done that confirmed those with variable rates were better off 88% of the time over the last 50 years. Today’s Variable rates are not the same as they were back then. All variables are now in the prime plus territory rather than prime minus a few year back. Today, the choice is not an obvious one. The fixed rates are almost at their lowest since Canada Mortgage and Housing Corporation started collecting data in 1951. The general consensus is that fixed rates are nearing the bottom. It’s more important to analyze your own financial situation and to evaluate your own risk tolerance before deciding on a fixed or VRM term. It’s all about your peace of mind, if your payments increase will you be able to sleep at night?