Last week Garry Marr, of the Financial Post wrote one of the more interesting articles on what effect there might be on those who have been funneled into a 5 year fixed rate mortgage due to the changes that came into effect on April 19, 2010. I can’t help but think this might end badly as it seems when ever people are herded into a particular term or product the clients end up being the losers. More troubling is the fact that most research indicates that shorter and more flexible terms are often better for the client. Below is a link to the Financial Post article which is a must read for anyone considering a 5 year fixed term.
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