Contrarian Corner: When Everyone Zigs, Is It Time to Hybrid?

Welcome to 2024, a year that promises to be easier on borrowers' wallets.

Sometimes, though, promises from the financial world are like that buddy who swears they'll help you move and never shows up.

That's why, even though the odds now favour floating-rate mortgages, it pays to account for unexpected twists. Excess fiscal stimulus, immigration, housing inflation and new supply shocks are just a few reasons why inflation could remain stubborn, keeping rates higher than expected (not a prediction).

Fortunately, there's a simple solution to hedge that risk economically: the hybrid mortgage. Think of it as the mullet of the mortgage market—business in the fixed front, party in the variable back.

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