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One thing to consider is that you are locking in your rates for 30 years, but you are in turn locking in your parents rates. Right now the best GIC rates are around 3.8% (National Trust via brokers), so it would be a good deal... but if interest rates climb again they might be able to get 5 or 6% from GIC's... and if rates shoot up around 15% or higher as they have I believe twice in the last 30 years (oil shock of the late 70's, and then again mid 80's?) then they would be missing out on some significant returns, as well as find themselves falling behind against inflation, although you would definately be ahead of the curve.
Over the last decade my grandmother has often suggested that we do something similar, but especially since I'm a fan of variable rates, there has never been a time when I wasn't paying the bank much less in interest than she was receiving from GIC's, so we've never done it. At the moment even if all her GIC's were to reset today, she'd be getting 3.8%, and I'm paying 1.5%.
Over the last decade my grandmother has often suggested that we do something similar, but especially since I'm a fan of variable rates, there has never been a time when I wasn't paying the bank much less in interest than she was receiving from GIC's, so we've never done it. At the moment even if all her GIC's were to reset today, she'd be getting 3.8%, and I'm paying 1.5%.
