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Mortgage renewal advice

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  • #31
    Originally posted by Gridiron View Post
    Lots of options out there:
    https://www.ratespy.com/
    I review all those mortgage brokers on ratespy and it doesn't give me confidence to use them. And those "too good to be true" rates are another red flag.
    http://www.soundclick.com/bands/defa...?bandID=914402

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    • #32
      Originally posted by guitarman View Post

      I review all those mortgage brokers on ratespy and it doesn't give me confidence to use them. And those "too good to be true" rates are another red flag.
      The better rates usually have restrictions on how much extra you can pay a year or more stringent breaking penalties. If you plan on making double mortgage payments from time to time or plan on doing a big annual payment, you will probably need to choose a slightly higher rate.

      You don't need to have confidence on the brokers. Once you got your new mortgage signed the broker is irrelevant.

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      • #33
        Originally posted by guitarman View Post

        I review all those mortgage brokers on ratespy and it doesn't give me confidence to use them. And those "too good to be true" rates are another red flag.
        HSBC has a posted 5 year fixed at 2.29 Even TD is 2.59 while the company I went with, First Financial 5 year fixed is posted at 2.64 right now.I was lucky and got a variable on a 3.7 year term at prime -1.2 so my rate should be dropping to 2.25.

        Since Oct 2008, the highest prime has went is 4.00 and its now 3.45 and probably going to drop further. If it was me and I was not worried about breaking my mortgage any time soon (paying it off fully, marriage, work, life etc instability, as the big banks as costly to break) I would go with HSBC on 5 year fixed at prime minus -1.11 or even there 3 year fixed at 1.99. In the past decade, the most prime has climbed in 1 year was 0.6 which would put HSBC at 2.94. Chances are with the economy and coronavirus, its going to drop and IMO I think to at least 2015 levels which would put that variable rate around 1.6-1.85

        Just make sure you check out the lump sum down payment amounts and break fees. First financial is great for that as you pay 3 months interest no matter the term. I was 8 months into a 5 year fixed and paid roughly 1,800 to break on a 340k mortgage. My wife was 3 years into a Scotia 5 year fixed on a very small mortgage (less than 200k) and it was over 10k to break.

        Last edited by hammy1983; Mar 12, 2020, 07:51 AM.
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        • #34
          Originally posted by hammy1983 View Post
          HSBC has a posted 5 year fixed at 2.29 Even TD is 2.59 while the company I went with, First Financial 5 year fixed is posted at 2.64 right now.I was lucky and got a variable on a 3.7 year term at prime -1.2 so my rate should be dropping to 2.25.

          Since Oct 2008, the highest prime has went is 4.00 and its now 3.45 and probably going to drop further. If it was me and I was not worried about breaking my mortgage any time soon (paying it off fully, marriage, work, life etc instability, as the big banks as costly to break) I would go with HSBC on 5 year fixed at prime minus -1.11 or even there 3 year fixed at 1.99. In the past decade, the most prime has climbed in 1 year was 0.6 which would put HSBC at 2.94. Chances are with the economy and coronavirus, its going to drop and IMO I think to at least 2015 levels which would put that variable rate around 1.6-1.85

          Just make sure you check out the lump sum down payment amounts and break fees. First financial is great for that as you pay 3 months interest no matter the term. I was 8 months into a 5 year fixed and paid roughly 1,800 to break on a 340k mortgage. My wife was 3 years into a Scotia 5 year fixed on a very small mortgage (less than 200k) and it was over 10k to break.
          I shouldn't have to break my mortgage. The small mortgage I have is going on my heloc as it is due March 15th. The bigger mortgage is up for renewal June 21st and I'm waiting till I can put the 2 in to one mortgage.
          http://www.soundclick.com/bands/defa...?bandID=914402

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          • #35
            Received a renewal rate of 3.15% (3 year variable) a month ago for an investment property. Today, renewal at 2.15%, the changing world we live in now.

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            • #36
              Originally posted by ripley502 View Post
              Received a renewal rate of 3.15% (3 year variable) a month ago for an investment property. Today, renewal at 2.15%, the changing world we live in now.
              Is that not the same offer adjusted by prime dropping?

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              • #37
                Hello Nuts,

                My mortgage is up for renewal July 1. I have been with BMO since the beginning and have gone variable since day 1. My current rate is .8 below prime. Not sure I can renew at that rate. I only have another 3.5 years left on the mortgage. What would be a good rate to try and negotiate. When the bank has called me for early renewal they were offering .04 below prime. I was thinking more in the range of .4 to .5 below. Is that fair?

                Your thoughts....

                Comment


                • #38
                  Originally posted by spas1 View Post
                  Hello Nuts,

                  My mortgage is up for renewal July 1. I have been with BMO since the beginning and have gone variable since day 1. My current rate is .8 below prime. Not sure I can renew at that rate. I only have another 3.5 years left on the mortgage. What would be a good rate to try and negotiate. When the bank has called me for early renewal they were offering .04 below prime. I was thinking more in the range of .4 to .5 below. Is that fair?

                  Your thoughts....
                  However you slice it....it's basically free money. Great time to be renewing a mortgage.

                  Comment


                  • #39
                    Originally posted by spas1 View Post
                    Hello Nuts,

                    My mortgage is up for renewal July 1. I have been with BMO since the beginning and have gone variable since day 1. My current rate is .8 below prime. Not sure I can renew at that rate. I only have another 3.5 years left on the mortgage. What would be a good rate to try and negotiate. When the bank has called me for early renewal they were offering .04 below prime. I was thinking more in the range of .4 to .5 below. Is that fair?

                    Your thoughts....
                    if you only have 3 years, you have almost no interest left so the rate will matter very little.
                    MEMBER OF THE 2012 AND 2015 RYDER CUP CHAMPS!

                    Comment


                    • #40
                      Originally posted by spas1 View Post
                      Hello Nuts,

                      My mortgage is up for renewal July 1. I have been with BMO since the beginning and have gone variable since day 1. My current rate is .8 below prime. Not sure I can renew at that rate. I only have another 3.5 years left on the mortgage. What would be a good rate to try and negotiate. When the bank has called me for early renewal they were offering .04 below prime. I was thinking more in the range of .4 to .5 below. Is that fair?

                      Your thoughts....
                      Congrats on the 3 or 4 years left. Like Jeff, interest in minimum at this time. Low fixed rate is what I would do . . . can't get much lower than this.
                      If you think it's hard to meet new people, try picking up the wrong golf ball.

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                      • #41
                        Originally posted by spas1 View Post
                        Hello Nuts,

                        My mortgage is up for renewal July 1. I have been with BMO since the beginning and have gone variable since day 1. My current rate is .8 below prime. Not sure I can renew at that rate. I only have another 3.5 years left on the mortgage. What would be a good rate to try and negotiate. When the bank has called me for early renewal they were offering .04 below prime. I was thinking more in the range of .4 to .5 below. Is that fair?

                        Your thoughts....
                        I was in this boat and didn't renew - I grabbed a HELOC and used it in first position as a mortgage. This gave me better ability to pay it down at my own pace, and it's not a bad weapon in the arsenal for title fraud protection. Rate wasn't great though (probably 4%).

                        Comment


                        • #42
                          You will always be better off with a variable rate over a 5 year term - That said, we will likely won't see 5 year fixed rates like this for a while, generally no where to go but up at this point...

                          Go to a broker, always the right thing to do if you're current FI is not willing to go your way.

                          Most aren't aware that many FI's are starting to price renewals based upon your credit scores and other factors. If your beacon score is 650 or higher you are in the best position to negotiate.

                          If your score is below 600, don't be surprised if your renewal offer has a higher rate.
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                          • #43
                            Last week I ended up resigning with RBC for 2.40 4 year fixed. I had talked with other mortgage brokers none of which could touch that.
                            http://www.soundclick.com/bands/defa...?bandID=914402

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