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 could very well prompt the Bank of Canada to turn the tide and head in the other direction. We could see from the summer of 2023, rates that start to fall again, ”says Fabien Major, financial planner.

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

In a year or two, the key rate could start falling again.

“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 about inflation according to this finance expert.