Should you lock in your variable rate mortgage is a question that always stirs up some debate and everyone wants a definitive answer. Of course, anyone that claims they can predict future interest rates is somewhat foolish or is making it up. So the answer to this question is – it depends. Depending on when you took out your mortgage, what your lock in options are, what your rate currently is, now may be as good of a time as it gets.

If you have a variable rate mortgage with a lender who will allow you to lock in at their best rates like MCAP, First National, or Street Capital amongst others, we would say that it makes sense for many to lock in your mortgage rate if you have two to three years remaining on your current term. Reason being is that the lock in rates can be lower than the variable rate you took out two to three years ago.

How is that possible you may ask? Well if your rate was prime minus 0.20% (currently it would be 2.50% based on a prime rate of 2.70%), you may be able to lock in at 2.49% possibly even 2.44%. If this is the case, why wouldn’t you lock in now. If you have a mortgage with a lender who allows you to lock in at their posted rates, it still might make sense to lock in dependent on your risk tolerance but there’s a bit more of a conversation to be had.

If you are looking for some guidance on if you should be locking in now, please give us a call or send us an email and we’d be happy to help you. We offer free mortgage reviews to anyone who currently has a mortgage regardless of if you are a client of ours or not.

We look forward to helping you!