Posted on: 24-02-06 18:51:43
My bank, Scotia had a promotion where they were giving some cash back for new mortgages. So I negotiated with them for adjusting cash back against penalty. So I really did not pay any penalty. I signed 5 yr fixed mortgage in 2001 and converted into variable in 2003. I think now I am paying .5 or 1% (whatever is the standard) below posted rate.
Quote:
Orginally posted by lana2005
My bank, Scotia had a promotion where they were giving some cash back for new mortgages. So I negotiated with them for adjusting cash back against penalty. So I really did not pay any penalty. I signed 5 yr fixed mortgage in 2001 and converted into variable in 2003. I think now I am paying .5 or 1% (whatever is the standard) below posted rate.
That really was a nice move on your part.
However, it seems you are not sure what variable rate you are getting as variable rate has got nothing to do with bank's posted rates but moves with bank's prime rate. Moreover, you might only be getting a discount of 0.5% and not 1% as Scotia's Capped variable product is prime -0.5%, which means as of today you are paying 4.75% which might move to 5% in near future.
Please confirm if my observations are correct.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Yes. you are right. I am paying .5 below prime.
Dear Pramod,
I have sent you a PM with the replies.
Thanks alot for your help.
Falcon
HI Friends
I recently locked my mortgage to fixed at 4.5 % with the help of one of the mortage consultants working with Scotia bank . I might be paying ,25 % extra than variable rates but it gives me a piece of mind for next five years and helps mme to budget the things accordingly.
Cheers
Ashwani
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Growing Old Is Mandatory ..Growing UP is Optional
Quote:
Orginally posted by AshwaniG
HI Friends
I recently locked my mortgage to fixed at 4.5 % with the help of one of the mortage consultants working with Scotia bank . I might be paying ,25 % extra than variable rates but it gives me a piece of mind for next five years and helps mme to budget the things accordingly.
Cheers
Ashwani
Good decision.
You did the right thing by locking at a much better rate. And no, you are not paying extra .25% than variable rate but paying much less (0.75%) as the present variable rate is 5.25% and is likely to go to 5.5% at Bank of Canada's next meeting.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Hi Pramod !
Thanks for your updated information . I am too happy to hear that I took right decision . I wrote 4.25 as variable b'cos bank is providing me with 1% discount as of posted rates .
Well anyway I will meet you someday soon for more of your valuable advises.
Ashwani
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Growing Old Is Mandatory ..Growing UP is Optional
