To anyone with experience with Canadian mortgages and refinancing... (Canadian mortgages have some subtle differences from US mortgages)
(background)
I have a $170k remaining on a 25 year mortgage with a 5 year term, and I have exactly 18 months left on my term.
I put 20% down so no PMI.
My current fixed rate term is 3.14%.
Currently my bank is offering 2.74% for a fixed 5-year term.
It would be fantastic if that was available 18 months from now, but... who knows.
(my dilemma)
I am considering refinancing now to lock in that loan. However, the research I've done suggests there would be penalties to pay, even if i was sticking with the same lender (which I must given some peculiar laws specific to my building). If i refinanced today I would save $1,200 in interest over that 18month period, which is barely worth it even without fees. BUT - my main motivation would be to 'lock-in' a great rate for the next 5 years. Call it 'fear of the unknown' but my worry is that in 18 months the terms will be >>4%.
I should add that even if rates go up I still have some arrows in my quiver - I have current investments that roughly equal the current mortgage, and I have that ability to roughly double our monthly mortgage payments to end it sooner. But MAN it would be nice to have that rate for the next 5 years.
Anyone in a similar boat? Anyone gone through refinancing before the end of your term?