Why You Shouldn't Choose A Variable Rate Mortgage In 2024

[@Jenomonix]

Great advice. Also, the BoC has said that when interest rates do go down they’ll go down at a much slower pace than the recent increases - taking longer to break even. Another reason to go fixed - subscribed!

[@REALESTATE100SHOW]

💯 🤜🤛

[@jaayclyde21]

Weren’t you the same person pushing variable back in 2021? Funny that your oldest videos are from 9 months ago.

[@northernpatriot]

Yah and I called this bozo out back then and he said I had a crystal ball. No I had some common sense.

[@REALESTATE100SHOW]

Same strategy as before - and all of my old videos are still up on the other channel.

[@donm2067]

Same. He said he didn't, so I spend an hour going through old videos and time stamping it where he was saying variables are the only way.​@@northernpatriot He says he's an economist, but I'm certain he has no clue about anything on the subject.

[@pathofinspiration]

Can you do a video on CHIP mortgages? Thx.

[@Relaxlifeisshort2]

Agreed good advice

[@REALESTATE100SHOW]

Thanks 🙏

[@GreenBeanGreenBean]

You don't choose a variable because it'll save you money down in 2026..........you do it because you don't want that big IRD penalty you would have if you went long term fixed.

[@NolanMatthias]

You’re absolutely right. I wish everyone knew that

[@REALESTATE100SHOW]

🤜🤛

[@jamesj2212]

Or have the best of both worlds and choose a lender that doesn't do posted/ special rate to screw you on IRD. I have fixed and never paid more than 3 months interest to break mortgage. I broke twice during pandemic, when 5 year dropped and then again to lock in 10 year at 2.01% and 2.06% on my rental. 7 more years of free money😁

[@GreenBeanGreenBean]

@@jamesj2212 well you hear horror stories of someone paying 20k+ IRD penalty every so often.... and ya on my fixed is 2.99% for another 4 years.

[@NolanMatthias]

yup

[@jeffotoole4509]

Going back to the well again Nolan. You took it pretty hard for the variable rate call in 2021 are you feeling lucky this time?? I had no problem with the variable call last go but I did notice a few upset commenters. Honestly it looks like the market can hold up with rates that are even 2-3-4% more than they are now. The question that we need to ask is the central banks fearless enough to cut rates with economies that are treading water? I don’t think they are but that’s just me.

[@REALESTATE100SHOW]

Hey Jeff, It's the same framework as before, take the lowest rate when you get the mortgage. People blaming me for what happened with rates is like someone buying in Vancouver because I said it is a nicer place to live than Regina, and then blaming me for them losing everything when an earthquake hits.

[@REALESTATE100SHOW]

Plus, people who are choosing variable right now need to think about the math.

[@jeffotoole4509]

@@REALESTATE100SHOW ya man I agree with you. I think the variable call at the time was the right decision. As soon as those rates started going up North all these people should have locked in, that’s their fault. Anyone that blames someone off the internet for their bad decisions just doesn’t get it and needs a scapegoat. The very fact that you make any concession is more than anyone else would do.

[@jeffotoole4509]

@@REALESTATE100SHOW yep you are right. Those rates would have to come screaming down to make any sense at all. Let’s just remember that absolutely no one believed in the 70s and 80s that rates could go to 20%. I am sure they had the same conversations we are having now with rates not being able to increase. I personally think that rates will stay the same as they are today long into the future. That’s just me. I think if people are taking variable rates I think they will be paying that premium long into the future. I guess we will see. Great video Nolan. Great advice by me.

[@steveplays5408]

Nope before the hikes rates couldnt go lower anyone that had the chance to lock in and stayed variable is a silly donkey ​@@REALESTATE100SHOW