I’ve mentioned in other blog posts that I think Inflation may to be an issue in 2-3 years because of ultra low interest rates and Stimulus packages from National Governments around the world.
I’m going to buy more real estate (Downtown condo’s and a house in East Van) and I’m going to get 5 year fixed rate mortgages to keep my payments (costs) consistent and then rent these places out. Inflation should push up rents while my costs remain static, leaving me with a nice profit. (hopefully)
I plan on getting 4% 5 year fixed rate mortgages. I like these because a decent amount of principal gets paid off and the costs remain low.
I’ve included this cool mortgage calculator and this inflation calculator from the Bank of Canada for you to play with and hopefully help you with your plans.
I’d love to hear your thoughts!
So I am thinking of selling my house but I have to renew mortgage and its other open or fixed witch is better if I want to sell
Hi Jason,
Good to hear from you.
Best to check in with a mortgage a broker, but I would decide based on how you sleep at night.
If you worry about change, go with a fixed rate mortgage.
If change doesn’t bother, you perhaps a variable rate mortgage.
What are your thoughts?
Thanks!