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Land Pimps: Lock in fixed or stay variable? NTSFW

April 24, 2015, 11:17 a.m.
Posts: 16696
Joined: Nov. 20, 2002

https://www.vancity.com/Rates/Mortgages/

https://www.vancity.com/Rates/?xcid=hp_pod_memberpreferredrates

Yah, but those links don't say anything about the variable rates, ie. what is "X" for their prime minus X variable rate mortgages.

When one person suffers from a delusion, it is called insanity.

When many people suffer from a delusion, it is called religion.

April 24, 2015, 11:25 a.m.
Posts: 1757
Joined: Nov. 23, 2002

Yah, but those links don't say anything about the variable rates, ie. what is "X" for their prime minus X variable rate mortgages.

i was just in vancity the other day shopping rates. prime minus .5 is pretty standard if you ask for it, prime minus .7 is usually do-able. their posted is prime minus .3

Luck is what happens when preparation meets opportunity ~ Seneca

April 24, 2015, 11:56 a.m.
Posts: 2368
Joined: Dec. 31, 1969

yeah well fuck you all, i have prime -1.85 at the bank of mom.

How much are your transaction fees though?

April 24, 2015, 12:18 p.m.
Posts: 1757
Joined: Nov. 23, 2002

How much are your transaction fees though?

ha!

not high, just lots of them though.

Luck is what happens when preparation meets opportunity ~ Seneca

April 24, 2015, 12:20 p.m.
Posts: 955
Joined: Oct. 23, 2006

i was just in vancity the other day shopping rates. prime minus .5 is pretty standard if you ask for it, prime minus .7 is usually do-able. their posted is prime minus .3

Best I could get from Vancity was -0.4 on a builder's mtg. Which for such a product I thought was pretty good. 3 months interest to bust out on completion, which is probably what I'll do and seek -0.8 or thereabouts. -0.86 is the lowest advertised right now http://www.ratehub.ca/best-mortgage-rates/5-year/variable

April 24, 2015, 12:27 p.m.
Posts: 1757
Joined: Nov. 23, 2002

Best I could get from Vancity was -0.4 on a builder's mtg. Which for such a product I thought was pretty good. 3 months interest to bust out on completion, which is probably what I'll do and seek -0.8 or thereabouts. -0.86 is the lowest advertised right now http://www.ratehub.ca/best-mortgage-rates/5-year/variable

those mtgs are thru brokers and the lender is emcap which is a good company, but that particular product of -.85 has some nasty terms.

- the only way you can get out is if you sell or die
- besides standard penalties, there is also a 2.75% admin fee if do you get out
- while you can switch to a fixed rate if need be, the rates available won't be that great

it has some upsides, but also some risks.

when shopping for a mortgage the rate is not the only thing to consider, look at all the terms of the mtg before deciding who to give your business too. if you're wanting to pay your mtg off fast, things like the allowable amount of prepayments or yearly lump sums can mean years or even a decade or more off the length of your mtg.

and by the way, i'm not a mortgage broker, i just play one on the internet.

Luck is what happens when preparation meets opportunity ~ Seneca

April 24, 2015, 12:53 p.m.
Posts: 10077
Joined: Nov. 19, 2002

i was just in vancity the other day shopping rates. prime minus .5 is pretty standard if you ask for it, prime minus .7 is usually do-able. their posted is prime minus .3

My guess is that the numbers vary up or down depending on what the mortgage market is like at the time you renew.

April 24, 2015, 6:29 p.m.
Posts: 955
Joined: Oct. 23, 2006

those mtgs are thru brokers and the lender is emcap which is a good company, but that particular product of -.85 has some nasty terms.

- the only way you can get out is if you sell or die
- besides standard penalties, there is also a 2.75 admin fee if you get out
- whil you can switched to a fixed rate if need be, the rates available won't be that great

it has some upsides, but also some risks. the rate is not the only thing to consider, look at all the terms of the mtg before deciding who to give your business too. if you're wanting to pay your mtg off fast, things like the allowable amount of prepayments or yearly lump sums can mean years or even a decade off the length of your mtg.

and by the way, i'm not a mortgage broker, i just play one on the internet.

Good to know, thank you.

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