Despite the low fixed rate mortgages available there are still many people asking for variable rate products. Most of the time they ask what the best rate for a variable is. In majority of the cases this would be a variable rate closed mortgage. However, I have been suggesting they take the variable rate OPEN even though it comes with a slightly higher rate. Why? Well, in this video I explain the strategy and the reasoning behind it.
UPDATED March 15, 2010: Since the recording of the video on March 3, 2010, variable rate closed mortgages are now as low as Prime less 0.50%.