Posted on: 23-02-06 17:53:49
Dear Pramod,
I am also having a variable rate mortgage, I would really appreciate any advice on whether to fix the rate or not?
Thanks a lot,
Quote:
Orginally posted by Falcon
Dear Pramod,
I am also having a variable rate mortgage, I would really appreciate any advice on whether to fix the rate or not?
Thanks a lot,
HI Falcon,
Before giving any answer to your question, we have to consider a number of factors such as:
1. What type of variable rate you have and from which bank?
2. How long have you had this mortgage?
3. What type of rates your present bank is offering and what type of
discounts they would give you if you convert to fix rate.
4. How comfortable you are with ups and down in variable rate as the prime
may go up one more time for around .25% and remain there for some
time.
You can email or PM these information to me (if you do not like to post it here) and I would try to guide you.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
I got my fixed rate mortgage in 2001. In 2001, the rates were going higher. However, after 6 months, the rates started going down. When varible rate was 3.00%, I was paying 6.25 %. So I started negotiating with my bank to convert my fixed rate to variable. From 2003, my mortgage was converted from fixed to variable and I started paying 3.25%
Quote:
Orginally posted by lana2005
I got my fixed rate mortgage in 2001. In 2001, the rates were going higher. However, after 6 months, the rates started going down. When varible rate was 3.00%, I was paying 6.25 %. So I started negotiating with my bank to convert my fixed rate to variable. From 2003, my mortgage was converted from fixed to variable and I started paying 3.25%
Hi Lana,
How much penalties, if any your bank charged when you converted a 'fiexed rate' mortgage in to a 'variable rate' mortgage. Secondly, what is your present variable rate now when prime as of today is 5.25%.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
I did not pay any penalties.
Quote:
Orginally posted by lana2005
I did not pay any penalties.
It means that either you were lucky to get waiver of penalties by your bank or your mortgage was coming up for renewal at the time you switched to variable rate.
You did not mention your present variable rate as the prime has moved up quite a bit.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Orginally posted by lana2005
I did not pay any penalties.
You're really lucky. I paid around 4K in penalties to convert.
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