Renewing your mortgage: which contract to favor according to an expert?

Despite the increases in the key rate in recent months, an expert believes that you should avoid committing to too long a term with the banks when renewing your mortgage.

“If you have to renew a mortgage, don’t go with the five-year fixed rate. There are other maturities like a one or two year contract because the economic downturn might very well prompt the Bank of Canada to turn the tide and head in the other direction. We might see from the summer of 2023, rates that start to fall once more, ”says Fabien Major, financial planner.

For the past two months, the inflation curve has been less important and this might mean a change in trend.

In a year or two, the key rate might start falling once more.

“If we have a variable rate we will benefit from it, but if you have closed it for five years and well [vous allez perdre un peu d’argent]he says

See all the information regarding inflation according to this finance expert.

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