I read this very interesting article in the Globe and Mail the other day. In a nutshell: fixed rate mortgages are the way to go right now. Because of prime rates being so low, and the constant fluctuations in the markets, it is possible to get a fixed-rate mortgage at the exact same rate that variable rates are at right now, and going fixed means locking that rate in so that you’re protected against rates inevitable going up.
While the mortgage broker that Rob Carrick interviewed has some good points, I do still see below-prime variable rate mortgages coming into my office. I’m not in the mortgage business, so I can’t speak to whether these rate changes simply haven’t made it into my office quite yet, but this is precisely the reason why it’s important to educate yourself, and ensure that you are actually getting the right product for where you are at the time you buy or refinance.