Libor dropped pretty significantly recently thats a pretty good barometer of how tight the credit market is.
Not sure just how a Czech hockey player has influence on the world economy …
Kn.
When one person suffers from a delusion, it is called insanity.
When many people suffer from a delusion, it is called religion.
4.35 was an awesome rate. I locked in at 5 and thought I did fine. I'm with Ken on this. Shop around. Banks want nice steady income now and you're it.
How early do people start shopping around on this sort of thing?
This is my first mortgage, I'm completely unfamiliar with the process on renewal.
IMO you can't start too soon
I had really good luck with mortgage brokers ,the RB guy at the time was actualy a contracter and he didnt fuck around much .He handed me a sheet of the rates and said "they tell me I gotta show you that but you can knock a point off"
Well this is very timely. I have to renew my mortgage in December. The best rate I was offer at my current lender was prime +1 for a variable.
One interesting option they gave me was getting rid of my mortgage all together and switching to a line of credit. That way I would not be locked into a contract and could pay off the principle without any penalties.
I think the bank as using the credit crunch as a way of screwing the consumers.
I wonder what happen to those record profits that they've been making these past few years?
One interesting option they gave me was getting rid of my mortgage all together and switching to a line of credit. That way I would not be locked into a contract and could pay off the principle without any penalties.
What was the LOC option quoted at?
Prime + 1 as well?
brotehr in-law the banker claimed if you keep the $ monthly amount you pay off THE SAME ALWAYS no matter what the [HTML_REMOVED]#37; rate and just go with the lowest/shortest term rate offered you would in the end pay less money . sometimes the rates would be low and you are paying extra $ off your mortgage and sometimes you might be getting nailed for more interest but on average he claimed it worked
I started looking around 6 months before renewal. I also got quoted a LOC but at prime - 0.5[HTML_REMOVED]#37;. I used this mortgage broker - he's a mountain biker but that's irrelevant really - he's just good. Bruce Savory http://209.85.173.104/search?q=cache:4Nref09UMTYJ:www.brucesavory.com/+bruce+savory[HTML_REMOVED]hl=en[HTML_REMOVED]ct=clnk[HTML_REMOVED]cd=3[HTML_REMOVED]gl=ca[HTML_REMOVED]client=firefox-a - not sure what happened to the redirect but that cached page has his details
If you apply for a mortgage they used to give you a guarrenteed max rate for a certain period of time which could be a good thing if rates go up
if a mortgage person wastes your time [HTML_REMOVED] doesnt want to play ball tell them to take a hike …unless of course you are an over leveraged loser who nobody wants to deal wiht
TD just cut Prime to 4[HTML_REMOVED]#37; - will see if other banks follow suit
http://www.newswire.ca/en/releases/archive/October2008/21/c8111.html
I got my mortgage through Bruce Savory as well and he did a fantastic job. great rate but also did alot of leg work as I was self employed at the time.
his company is called Mortgage Intelligence
Good to know. I'm up for renewal in Mar. Trying to get a read on where the rates are going. Locked in at a 4.35 5 years ago, seriously considering variable come renewal time.
This sounds familiar- I'm locked in at 4.6% and it's up for renewal in April. Sure would be nice if the rates were somewhere near that or at least not a whole lot more than 5% for a another 5 years.
ski faster, I hear banjo music
Good to know. I'm up for renewal in Mar. Trying to get a read on where the rates are going. Locked in at a 4.35 5 years ago, seriously considering variable come renewal time.
I think if you have the finacial flexibility and good credit you are crazy to do anything but a variable rate mortgage. Provided you get a mortgage with the ability to lock in I don't really know how you can lose. Most people I know on variable rate are paying ~3.5% right now.
~75% of the time the variable rate mortgage is the winner.
Most people I know on variable rate are paying ~3.5[HTML_REMOVED]#37; right now.
Except that banks appear to have stopped offering Prime minus on variables in the last couple of weeks.
But I'm certainly weighing that option and watching what the banks are doing..
CS, did you decide which way you are going?
Hey - I just thought I'd pipe up on this being that I am a Mortgage Broker… Both the Fixed and Variable rates are attractive right now. The fixed rates are as low as they have been in about 4 years (at about 4.39[HTML_REMOVED]#37; - 4.49% 5yr fixed), and despite the variable rate mortgages being bonused at aprox +0.80% the effective rate on a 5yr variable as of today is still only 3.80%
It wasn't too long ago that variable rate mortgages were being offer at Prime -0.80%, but to due the fear created by the 'credit crunch' the banks have cited the 1.60% swing as "the cost of doing business" (in order to offset the added risk in todays economic climate).
The decision between choosing a variable rate mortgage and a fixed rate mortgage should not be made on the sole basis that the variable rate mortgage is currently lower - making it more attractive to many prospective borrowers… Some borrowers - especially first time buyers who are going to be faced with a lot of latent costs associated with home ownership, or borrowers that essentially live paycheck-to-paycheck may be better of to select a fixed rate and thereby fix their payments for the next 5 years (or for the length of the term selected).
If you're one of those people that has a mortgage coming up for renewal in the next 3 or months and you are considering a fixed rate mortgage now is a great time to get a 'pre-approval' to secure the interest rate. In the event that rates rise between now and your renewal date you would be protected and receive the pre-approved rate… If rates continue to drop you are guaranteed to get the lower rate.
If anybody has any questions or if you would like some free independant advice you can drop me a PM and I will give you my contact info.
Cheers,
Daryl
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