That's an interesting perspective, and I can see why you went with a fixed rate in the end. Variable rates definitely have their appeal, especially when they're initially lower, but the uncertainty factor is something that shouldn't be underestimated. I've seen plenty of people who chose variable rates and later found themselves constantly checking economic news, stressing each time there's talk of rate hikes.
One thing to keep in mind though is that fixed rates aren't always the perfect solution either. I've had clients lock into a fixed rate right before rates dropped significantly, and they ended up feeling frustrated about missing out on savings. There's always a bit of a gamble involved, no matter how much research we do.
I remember one couple who went variable despite being quite risk-averse, simply because their financial situation allowed them to comfortably handle potential increases. Interestingly, they made extra payments whenever rates were low, which helped them build equity faster. It turned out pretty well for them, but I realize that's not everyone's scenario.
Speaking of equity, I'm curious—have you checked recently how much equity you've built up since you bought your place? With property values changing so rapidly in many areas, it can be surprising to see how much (or sometimes how little) ownership you actually have. It's always good to keep an eye on that, especially if you're thinking about refinancing or making future financial moves.
Haha, reading this reminded me of when I bought my first place. Thought I was being super savvy going variable, but ended up obsessively refreshing financial news sites every time someone whispered "rate hike." 😂 Eventually switched to fixed just to save my sanity. As for equity, checked mine recently and was pleasantly surprised—guess obsessing over rates paid off a little after all...
Haha, totally relate to the rate anxiety! I went fixed from the start just because I knew I'd lose sleep otherwise. Glad your equity check was a nice surprise... makes all that stress seem worth it in hindsight, doesn't it?
"Glad your equity check was a nice surprise... makes all that stress seem worth it in hindsight, doesn't it?"
Yeah, equity checks can definitely feel rewarding, but honestly, I think sometimes we overvalue short-term gains from market fluctuations. When I bought my place, I went variable-rate after crunching numbers and realizing that historically, variable tends to save money long-term—even if it means a few sleepless nights along the way. Fixed rates do offer peace of mind, but there's something to be said for tolerating a bit of uncertainty if the math backs it up.
Interesting points about variable vs fixed rates. I've always leaned towards fixed myself, probably because I'm a bit risk-averse when it comes to big financial decisions. But lately, I've been wondering if that peace of mind is actually costing me more than I realize. Like, am I paying a premium just to sleep better at night?
I remember my parents went variable back in the early 2000s and ended up saving quite a bit over the life of their mortgage. They had some stressful moments when rates spiked temporarily, but overall it worked out well for them. Makes me think maybe I'm missing out by sticking with fixed.
Do you think there's ever a scenario where the psychological comfort of fixed outweighs the potential savings from variable—even if the math says otherwise? Curious how others weigh that balance...
