How Globe & Mail cost readers (who followed the reporter’s advice) lost thousands of dollars on their mortgages

Don’t believe everything you read. Here is a great example taken from

October 26, 2007

Globe Says Lock In

Lock-in-Mortgage Rob Carrick from the Globe & Mail is ringing the alarm. With mortgage rates at 6-year highs and shrinking variable-rate discounts, he says it’s time to lock in now.

Back in 2007 5 year mortgage rates were about 5.75%. So a $250,000 25 year mortgage would be $1,565 per month.
after 5 years this balance would be $224,033.

Compare a variable mortgage at the time of say 3.5% the same $250,000 mortgage would be $1,247 per month.
Difference $1,565 – $1,247 = $318 per month over 60 months (five years 318 X 60 = $19,080)

Balance on the $250,000 would be $215,861 So $224,033 – $215,861 = $8172

So let’s look at this “advice” Payments $318 per month higher over 60 months $19,000 lost
Balance on mortgage $8100 higher


Total cost to the readers (assuming the above mortgage)

Over $25000 LOST!!

Lets add to this pain and say the parents bought a 20 year term coverage 45 years old for $1,000,000 each.
So $2,000,000 total would be $282/month.

So five years later, lower mortgage balance, better protection for the family.