Financial Post writer, Garry Marr, says Professor Milevsky is now “leaning somewhat in favour of the five-year closed fixed-rate mortgage.” (Story)
That’s a contrast to the theme Milevsky echoed in his 2001 report, Floating Your Way to Prosperity. It does, however, correspond to the sentiments Moshe expressed in his discussion here last February.
Milevsky told Marr, “At some point, people have to ask themselves if they can afford the fact that eventually [rates] are going to go up.”
Marr goes on to assert: “Consumers getting into variable rate products are facing the risk that the discounts they negotiate today will look pretty ugly in a few months.” (In other words, he’s saying that bigger discounts to prime may be coming for variable-rate mortgages.)