Posted on: 20-01-09 21:14:43
Hello All,
My mortgage renwel is due in July, 2009.
- What is the best time to start looking around for the best rate.
- What is the procedure. Should I go bank to bank or contact with any broker
- Currently I have five year fixed mortgage. What you guys suggest,
go for fix or variable
- I have good credit history, whats the best rate people are getting under
current difficult credit situation
- Any suggestion..
Regards
Ooh before i forget
RBC has some special offer.
5 yr fixed, closed for 4.49%
3 yrs, 4.39
1 or 2 yrs, don't remember exactly, 4.29%
These are declared today, Jan 20th 2009 - after BOC rate cut. I'm sure TD as well will have something matching. I would suggest, approach these banks. Ask if you can get into.
I am not an expert. But i'll take the honor.
Quote:
Originally posted by Aurn
- What is the procedure. Should I go bank to bank or contact with any broker
Ask your current lender. Tell them you'll ask only once and ask them for their best rate. Yes, the best.
Ask any of your friends for any referral for any mortgage specialists (from banks as well as independent)
Call them, or if required meet in person, ask them same question. Their best rate.
If required, call them second time with a better rate from some another bank.
(Hey, TD is offering prime minus 0.3 ... Can you beat that? - Note: "beat that", not "match that"
Trust me, each bank needs your business. If "TD" can give you prime minus 0.3, other bank can as well atleast match that. (You mentioned good credit, right?)
Quote:
Originally posted by Aurn
- Currently I have five year fixed mortgage. What you guys suggest,
go for fix or variable
This is like opening can full of worms. Per definition, variable is good if rates are expected to fall. But after today's rate cut, BOC has very lil room left.
Again, historically speaking, variable have done well.
I'm in variable. But it's all up to the individual and his/her comfort level.
Play around in XLS, (mortgage payment calculator: search for "mortgage payment" in MS excel .. there is some downloadable .xls file in which you can play around with APR, amortz., amount, extra pymnt, etc) ... check with different rates .. check out BOC website to see prime rate in past 10 yrs. You'll have some idea.
And if you'r changing financial institute, don't forget to ask about admin fees. I think it's few 100's that your new bank will charge.
On 200K mortgage, 0.25% difference could means $20-40 a month. That's worth more than few phone calls to banks for negotiation.
Again, RBC's 4.5% 5yr is lucrative.
This is like opening can full of worms. Per definition, variable is good if rates are expected to fall. But after today's rate cut, BOC has very lil room left.
Scotia bank has also offered 4.49 % 5 yrs fixed....
I heard in news that bOC is waiting to see what budget has to offer and then they may reduce more.
I don't want to hijack your thread...
If I were you and the knowing where the economy is headed from here and listening to the comments made by all of the GURU's, I am of the opinion that the interest rates will tank to the lowest that one has ever seen in their life time. If anyone is not in a hurry to pick up a mortgage, then I will put it off till the rates go down to a level that you always liked it to be. {You are about to see the drag marks in the snow!}
Also, if anyone is looking to buy a property of his choice, put it off for a period as long as he can and watch it carefully or bid a price so ridiculous, it should spin the heads of the Realtors. {Take it down to fifty percent of the asking price}
It is not good news. But it is what that is in the projections from the Bank of Canada that is mind boggling. AND I would like the Banks who want to lend to consumers, pass on that extra half a point to stimulate the economy. (Dremer!!) I know I paid for the first brick in their tower. You are now paying for the next.
Please make a note.
Freddie.
Why am I so mad? Because the Politicians that we elected, not me, have their heads buried in the sand. The bankers are plying palsy walsy with them. Where are all the regulatory bodies? I know they are also in Australia looking for wool, yes, to pull it over our eyes. And every one says our economy is Strong. Come on guys, we had enough of this concentrated, unadulterated and thick B.S. When US is pouring Billions into the Banks to bail out, our Canadian Government will say, yes we will give everyone a tax break. {Yea, if you have job and have to pay tax that is} I remember what Lech Walensa said, when Canadian Government handed a life line of ONE Million to Poland, "It is like handing a TIE to a dead person". You haven't seen the suffering yet, till you can take yourself back to the thirties. Yes 1930 i.e., Freddie.
I would say ...wait to shop yet....your renewal is due in July....bank of canada has another meeting on march 9...there may be another cut by then....shop after that....you still have a lot of time
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Pooja
Just about an year ago the Mortgage Brokers were offering Variable Open at rates Prime Minus ONE. The banks woke up. WHY?? because they knew the rates will hit the skids and there might come a time when they will be paying you money if you have such a mortgage and if it hits ONE Percent and below!!
That never happened before. Watch it. !! We will be seeing it in our own life time.
Now they are trying to cover their rear end by holding back the first half point, because they are about to see a big lash mark in their rear.
These are all the signs of times. {Portents and Omen}
Freddie.
lol....that;s hillarious freddie....the way you put it. I like it, not everyone has the beauty with words & sarcasm
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Pooja
