In canada, if i have a variable rate mortgage with a 5-year term, am i allowed to switch to a fixed rate mortgage at any point during the term? thanks
What does your loan agreement say?
thx darien i dnot have a mortgage, i was just asking in general if this is possible.
it depends on your loan agreement. my parents recently took out a mortgage (in canada) and i’m convinced that they didn’t even read it. their interest rate just hit around 3.5% and my dad thought he could cherrypick the rate at which he could switch the mortgage over to fixed. he was in for quite a surprise after calling his broker to ask him to fix the rate at 3.5%,
jimjohn Wrote: ------------------------------------------------------- > thx darien i dnot have a mortgage, i was just > asking in general if this is possible. Just call your bank and ask.
It depends on the FI. Some allow you to flip over no penalty, some charge a penalty if you are in a variable closed. Our FI allows you to go into a fixed term equal to the remaining term on your variable term.