Richard Tartaglia
2005 sheppard ave e #200 Toronto, ON, Canada

Thx for having me on Tharmila and Josh!

With rates being at all time lows and a very hot topic these days, many borrowers are considering 5 year fixed rates, or even asking about longer term mortgages at 3%+. Here is why I think a 5 year Variable rate mortgage is likely the best way to go. Here is how I see it. Go variable for the next 2 or 3 years and convert to a 5 year Fixed at that time as there is no cost to convert to fixed from variable during the term. Now you have 7 - 8 years of approximately 2% interest r...ates, versus locking in today and renewing your 5 year Fixed rate after rates are projected to start rising 4 years from now. Some historical context. Since the credit crises 2008/2009 rates bottomed out. Fixed rates moved to +3% in 2014. Again rates dropped and bottomed out in 2016. Again rates moved up back to +3% in 2018. So, the trend suggests that the market is comfortable with 5 year fixed mortgage rates being over +3%. Will history repeat itself? My opinion is yes. VRM convert to Fixed 2020 Variable @ 2% 2021 Variable @ 2% 2022 Variable @ 2% 2023 Fixed @2% 2024 Fixed @ 2% 2025 Fixed @ 2% 2026 Fixed @ 2% 2027 Fixed @ 2% 2028 Renewal Versus Fixed today 2020 Fixed @ 2% 2021 Fixed @ 2% 2022 Fixed @ 2% 2023 Fixed @ 2% 2024 Fixed @ 2% 2025 Renewal @ higher rates 2026 higher rate 2027 higher rate 2028 higher rate https://financialpost.com//posthaste-super-low-interest-ra

Prospective homebuyers were reassured yesterday that interest rates will remain near historic lows for a long time, according to Bank of Canada Governor Tiff Macklem. The BoC chief made the comments during a conference call following the Bank’s interest rate meeting, where it left the overnight lending rate unchanged at 0.25%, at its effective lower bound. Interest rates are very low and they are going to be there for a long time, Macklem said. Canadians and Canadian b...usinesses are facing an unusual amount of uncertainty, so we have been unusually clear about the future path for interest rates. In the Governing Council’s official statement, it said it would hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. Observers say that implies the Bank has no plans to start raising rates until at least 2023.

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Here is my mortgage lending COVID-19 market update presentation - only free for view today! Watch the 3rd video from the top in the link below. https://lifestylehousingsummit.com/presentation-page-3/