Further to last weeks ‘Big Bad Bank Of Canada‘ post… the huffing and puffing continues with no signs of easing up, and so we must ask ourselves; what should we be doing/advising/thinking?

Key Point; None of us should persecute ourselves with today’s information based on decisions made yesterday, with yesterdays information. Although it may be our (human) nature to do so.

To this end, I myself chose variable when closing on a property Dec 23, 2021.

No, I’m not locking in, and being a variable, rather than adjustable, I’m not feeling any particular pressure to do so.

I was seeking certainty of payment, not certainty of amortization, as this playa a key role in my debt servicing equation on my next purchase.

Key Point; Working with a multiple property owner with multiple adjustable rate mortgages?

Stay on top of their qualifying GDS/TDS as Prime moves.

Key Point; Given todays information, if I were closing on another property… which I’ll do soon… would I go variable again?

Yes.

But my profile may not match yours, or your clients.

As always it boils down to what you (or you’re clients) are seeking certainty on, and what their bigger picture longer term plans are.

Is it about paying off (a) debt, or is it about accumulating appreciating assets that pay for themselves (eventually), or it is about another gameplan?

Ask yourself what your plan is.

Write it down.

Ask your clients what their plans are.

Write it down.

It’s nice to have those notes to refer to when they return, years later, asking why something was done the way it was.

In closing…

If you want a 19 minute long mash up of last weeks thoughts, todays thoughts, and all that happened in between, here it is, with a few laughs thrown in…