Question


RJ

Am I misunderstanding or is it a crazy risk to get a variable/ adjustable rate mortgage now?

If you take out a variable/adjustable rate mortgage now isn't there a risk it can go to 10-15% or higher if there is high inflation and the central bank raises interest rates?

6 months ago - 2 answers

Best Answer

Chosen by Asker

It will go up. With fixed rates this low it is just plain stupid to get an adjustable now.

by Landlord

6 months ago

Asker's Rating: 

Other Answers

Yes - but it may be cheaper in the short term for you ... if it stays low at at 1% or so. Yes it's a gamble but that is what life decisions are all about. If you fix your mortgage at say 5% now you will be paying more until the mortgage rate becomes higher than that figure.

by Robert W- 6 months ago