I got my new home closing for next year in september . My question is do i need to bother now and shop for Mortgages or later on when the closing date approach closer.
Thanks
Quote:
Originally posted by nari
I got my new home closing for next year in September . My question is do i need to bother now and shop for Mortgages or later on when the closing date approach closer.
Thanks
Nari,
Congratulations of buying your 'own home' in Canada.
As you have decided to buy a new home, I presume you are buying it directly from a builder and it would take around 18 months from now when you would get possession of your 'prized asset'. However, in brokerage channel we lock interest rates only up to 4 months period.
I would suggest you to either go to your bank or the banker at the builders office and lock the rates for you as they can lock the rates for your for 18 months time. This way you will assure yourselves of getting a good rate if the rates go up when you take the possession. However, in May next year, you should start shopping by contacting any mortgage professional and find out if he/she could get you a better deal than what you have with you and then decide.
Any more questions, either ask here or PM.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks!
Promodji,
for you suggestion i always like reading your post they are quite informative and helpful.
Posts: 279
Location: Greater Toronto Arena
Posted on: 02-04-08 16:28:20
Location: Greater Toronto Arena
Posted on: 02-04-08 16:28:20
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by nari
I got my new home closing for next year in September . My question is do i need to bother now and shop for Mortgages or later on when the closing date approach closer.
Thanks
Nari,
Congratulations of buying your 'own home' in Canada.
As you have decided to buy a new home, I presume you are buying it directly from a builder and it would take around 18 months from now when you would get possession of your 'prized asset'. However, in brokerage channel we lock interest rates only up to 4 months period.
I would suggest you to either go to your bank or the banker at the builders office and lock the rates for you as they can lock the rates for your for 18 months time. This way you will assure yourselves of getting a good rate if the rates go up when you take the possession. However, in May next year, you should start shopping by contacting any mortgage professional and find out if he/she could get you a better deal than what you have with you and then decide.
Any more questions, either ask here or PM.
Good Luck.
don't lock in! .. i locked in and then decided to pay the $5,000 penalty to break-free and go variable ... going variable then went on to save me $9,000 ... still $4,000 ahead.
prime plus is the way to go.
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happily holi day!
Quote:
Originally posted by 905Desi
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by nari
I got my new home closing for next year in September . My question is do i need to bother now and shop for Mortgages or later on when the closing date approach closer.
Thanks
Nari,
Congratulations of buying your 'own home' in Canada.
As you have decided to buy a new home, I presume you are buying it directly from a builder and it would take around 18 months from now when you would get possession of your 'prized asset'. However, in brokerage channel we lock interest rates only up to 4 months period.
I would suggest you to either go to your bank or the banker at the builders office and lock the rates for you as they can lock the rates for your for 18 months time. This way you will assure yourselves of getting a good rate if the rates go up when you take the possession. However, in May next year, you should start shopping by contacting any mortgage professional and find out if he/she could get you a better deal than what you have with you and then decide.
Any more questions, either ask here or PM.
Good Luck.
don't lock in! .. i locked in and then decided to pay the $5,000 penalty to break-free and go variable ... going variable then went on to save me $9,000 ... still $4,000 ahead.
prime plus is the way to go.
Mr. 905Desi,
I think you got the term 'lock in' for the mortgage rate confused with 'Locking in your mortgage for fixed rate term'.
The first term means that the bank is guaranteeing you the rates till such time the closing takes place. This does not mean that by them guaranteeing the rates now, you are bound and you have to take mortgage through the same bank. This guaranteeing of the rates comes in handy if the rates go up at the time of closing.
The 2nd term is when the actual closing takes place.
At that time you have the option of getting the guaranteed rate, or a much better rate from the same bank or other institution if you qualify or going in for a variable rate mortgage. You can chose what ever is in your best interest at the time of closing.
I hope you noticed that I mentioned that right now you can go to your bank and lock the rates for 18 months and start shopping around from May 2009 onwards.
In your case if you had taken the advice of a professional you would have been ahead with $9000 and NOT $4000.
Moreover, the variable rate should be prime minus AND NOT prime plus.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
any pointers ..
TD is offering 4.15 variable (prime - 0.60) ?
I think variable is the way to go .. I am also hoping for a weekly mortgage payment ..
Also on the subject any good property management companies folks can suggest ..
I want to rent the new (town) house ...
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Quote:
Originally posted by rp_0999
any pointers ..
TD is offering 4.15 variable (prime - 0.60) ?
I think variable is the way to go .. I am also hoping for a weekly mortgage payment ..
Also on the subject any good property management companies folks can suggest ..
I want to rent the new (town) house ...
You can get much better by shopping around or going through a mortgage broker.
And yes, most of the times, variable is a better option than a fixed rate and for paying down mortgage faster weekly or bi-weekly accelerated payments are advised over monthly payments.
No idea about a property management company for renting town houses.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
