Posted on: 03-02-07 15:27:53
Quote:
Originally posted by investpro
Quote:
Originally posted by arcrave
So I had a meeting with my broker last evening, She is offering me prime - .95 for 6 months and then it would be 5.6%. Its variable with 3 year term reviewed quarterly ( as opposed to 8 times a year ).
I was pre-approved ( before the rate increase i.e in dec ) for 5.09 ( 5 year fixed ). I asked for other details and basically she is saying that i can pay up to 20%/month over my regular payment and 54K/per year on top of that 20%. I am thinking of opting for variable ?? wondering if this is a good deal ? anything I am missing and should be careful about ??
Thanks
Not to offend you, but if I read you right, you've got a raw deal.
Hi
Can you add bit of detail into why its a raw deal and what measures can I take ... Also I am sending you a PM just to understand this a bit not waste others time ..
Thanks
As mentioned earlier, I got it through a friend of mine who does mortgage and insurance. Unfortunately, I do not have any paper or document with me as of now to support the approved conditions 
and I am expecting soon.
I just spoke to him briefly whether he could get 4.95% for qualifying applicants, and his answer is "I will try". If you like to talk to him, Please PM me. I will send his contacts. For my own personal reasons I can't post email or phone number in the forum.
Regards,
Quote:
Originally posted by investpro
Hi,
Since the question was posed of JRF first, perhaps we should let him/her have the honor of giving us the name of his/her lending institution.
Should JRF not give an answer in 48 hours, I will def PM you at least one name of a leanding (purposely misspelt to denote leading and lending) institution still offering 4.9%.
If you feel like having fun and wish to tax the brain a little over the weekend, here's a hint: Think of Stephane Dion's message: Green.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by arcrave
So I had a meeting with my broker last evening, She is offering me prime - .95 for 6 months and then it would be 5.6%. Its variable with 3 year term reviewed quarterly ( as opposed to 8 times a year ).
I was pre-approved ( before the rate increase i.e in dec ) for 5.09 ( 5 year fixed ). I asked for other details and basically she is saying that i can pay up to 20%/month over my regular payment and 54K/per year on top of that 20%. I am thinking of opting for variable ?? wondering if this is a good deal ? anything I am missing and should be careful about ??
Thanks
It means that you are getting a rate of prime -0.95% for first 6 months and for the remaining term the rate would be prime -0.40%. In mortgage terminology, we call it a 'teaser rate'.
Hence in a lay man's language you are getting a total discount of 1.95% ( 0.95% for 6 months and then 1% for the remaining 2 and half years ) as opposed to a total of 2.7% if you get a 'deep discount' of prime -0.9% for the whole 3 years. The difference would be more if the deep discount turns out to be prime -0.95% for the whole term. I can get you the same for full 5 years with a review every quarter.
Now you know what type of deal you are getting. And one more thing, it is not always the rate but the value of advice you get from your consultant or planner which makes the difference in long run.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
