Written by 8:39 PM Interest Rates, Opinion Views: 1

Milevsky On Fixed Rates

Moshe-Milevsky Moshe Milevsky, the professor behind Canada’s most quoted mortgage study, says he never anticipated the credit markets of the last year when he completed his original research.

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.)

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Last modified: April 28, 2014

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.