Hi Friends
I am thinking of going from variable to fixed mortgage rate for 5 yrs closed period. I may not go for fix rate right now and just break existing contract for varialbe rate and switch to a new mortgage provide company offering best rate in the industry.
So can you advise what is the best rate available for 5 yrs closed variable ???
Much appreciated.
Thanks
Location: Brampton, Ont, Canada
Posted on: 13-05-10 14:34:25
Visit this website you have some inforamtion on rates for fixed and Variable rates : http://www.centum.ca/mukesh_patel
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Quote:
Originally posted by rainforest
Hi Friends
I am thinking of going from variable to fixed mortgage rate for 5 yrs closed period. I may not go for fix rate right now and just break existing contract for varialbe rate and switch to a new mortgage provide company offering best rate in the industry.
So can you advise what is the best rate available for 5 yrs closed variable ???
Much appreciated.
Thanks
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You came to the right place to ask for help.
First learn to do a little math.
Then find out the features of each of the terms that you have written above.
Then contact a Mortgage Broker to explain the features you are asking about.
Then find out what are the savings if you go the route that you are describing above.
I know you don't want to shoot yourself in the feet. If you want to, please don't use a cannon.
Freddie.
Quote:
Originally posted by rainforest
Hi Friends
I am thinking of going from variable to fixed mortgage rate for 5 yrs closed period. I may not go for fix rate right now and just break existing contract for varialbe rate and switch to a new mortgage provide company offering best rate in the industry.
So can you advise what is the best rate available for 5 yrs closed variable ???
Much appreciated.
Thanks
Hi,
You have to provide more information as to what is your present variable mortgage rate and how long you have had this rate. What is your tolerance level as the variable rate have no where but to go up from here. How far they would go is any body's guess. The fix rates have gone up from what they were over a month ago. Though they have come down again a bit but depending on the terms and closing time, various banks are offering 5 year fixed between 4.24% to 4.59%.
Presently the variable rates are available from p -0.4% to prime -0.65% with some conditions.
If a person gets a good variable rate but does not have the stomach to face the ups and downs in the rates, I suggest him/her to take the variable rate mortgage but keep your payments to the level of a 5 year fixed term rate. This way there are potential of lots of savings as right now the gap between best variable rate and the best 5 year fix term rate is over 2.5% and it will take some time for the Bank of Canada to raise their overnight lending rate to cover this gap and the person can enjoy good savings till the rates go to this level.
In any case, only after having precise information about the present rates, time left, penalty amount and your risk tolerance any correct advice can be given.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
It is nice to see your response to the OP's queries.
I wanted to know the terms and conditions that are existing currently, as they are changing every other week and it is difficult to keep up. Plus, people in your position are able to help them with slightly better rates and conditions than the ones we normally encounter in the Mortgage markets.
Thanks for a good run down on the basics too. This should help one from making costly blunders.
Freddie.
Quote:
Originally posted by rainforest
Hi Friends
I am thinking of going from variable to fixed mortgage rate for 5 yrs closed period. I may not go for fix rate right now and just break existing contract for varialbe rate and switch to a new mortgage provide company offering best rate in the industry.
So can you advise what is the best rate available for 5 yrs closed variable ???
Much appreciated.
Thanks
Currently, variable rate is available @ Prime - 0.5% (5 yrs closed)
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Ram Saravanan
REALTOR®
Homelife Landmark Realty Inc. Brokerage
Tel: 647-200-2266
