For the past few years, the Bank of Canada has warned us about the imminent interest rate hikes. Reminds me of the boy that cried wolf. “Interest rates are going up… soon!… real soon…. really, really soon!!” But last week, the new Bank of Canada Governor, Stephen Poloz, surprised many experts when he said rates would remain low for quite a while.
This announcement prompted many advisors to jump on the Variable Rate bandwagon and start recommending Variable rate over Fixed rate. I agree… Variable rate is the obvious choice for most of us today. But I also noticed a familiar rule of thumb being quoted in the media. So I wanted to set the record straight. Read the rest of this entry »