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Fixed mortgages the way to go, says economist
As the federal government warned it may again tighten mortgage rules, a Bank of Montreal economist says fixed mortgages `clearly trump` variable mortgages in today`s economy.
There are two reasons for the change of heart by Douglas Porter, deputy chief economist at BMO: the intense competition among lenders and the economic recovery in the U.S.
`While we have in the past supported going variable, and even though short-term rates are likely to remain low this year, current offers on long-term mortgage rates and the recent shift in bond market sentiment tilt the balance heavily in favour of locking in at this stage,` wrote Porter in a report, Time to Say Goodbye to Variable.
Read the full article here.
As the federal government warned it may again tighten mortgage rules, a Bank of Montreal economist says fixed mortgages `clearly trump` variable mortgages in today`s economy.
There are two reasons for the change of heart by Douglas Porter, deputy chief economist at BMO: the intense competition among lenders and the economic recovery in the U.S.
`While we have in the past supported going variable, and even though short-term rates are likely to remain low this year, current offers on long-term mortgage rates and the recent shift in bond market sentiment tilt the balance heavily in favour of locking in at this stage,` wrote Porter in a report, Time to Say Goodbye to Variable.
Read the full article here.