>>60818688
It seems like shorter term fixed rates can be better if we see lower interest rates over time.
If you bought 25 years ago, you'd be stuck paying 8% for the full 25 years, sitting on the sidelines meanwhile interest rates actually plummeted to 2-3%.
As a leaf, if you bought 25 years ago, worst case ontario you locked in at 8% for 5 years, but then by 2005 you can renew and pay 6%. Then 5 years later 4.5%, then 4%, then 2.7%, then 6.5% for the final 5 years.
Problem is, as a leaf if interest rates go up from a turbulent economy, you get double fucked in both mortgage payments increasing and higher risk of losing your job. That's really the only advantage fixed full term mortgages have.
That said, the people that locked in full term mortgages at 2.7% were so lucky, though we also saw asset prices be artificially inflated higher due to the lower interest.
Personally, as someone capable of saving money, I'd rather see high interest rates to bring total asset prices down. I'd much prefer to buy a house at 200k with 20% interest rates and just buy it in cash, rather than pay 800k with a 2.7% interest rate over 25 years.
