re-mortgage?

Discussion in 'Reality Check' started by Boots, Jan 30, 2009.

  1. Boots

    Boots
    [OP]
    www.reality-check.ca

    Joined:
    Jun 3, 2003
    Messages:
    74,857
    Likes Received:
    4,640
    Location:
    Halifax
    I'm locked in right now @ 5.75% on our mortgage. It's a pretty good size mortgage so a lower rate would save a lot of cash. I'm asking my bank about re-mortgaging... anything I need to know or do?
     
  2. Smokey

    Well-Known Member

    Joined:
    Aug 18, 2003
    Messages:
    12,115
    Likes Received:
    271
    Location:
    Edmonton
    If you are with a bigger bank right now it shouldn't be an issue. How much is left of your term? Right now PC financial is offering a variable mortgage of prime +.8 leaving you with a wonderfull 3.8%..
    You will most likely have to pay an early payout penalty of $500-$700, unless you are with a horrible bank like i am where my payout penalty will be 5k+.
     
  3. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    If you renew with the same bank, they'll probably waive the discharge fee.
     
  4. infatuous

    Well-Known Member

    Joined:
    May 16, 2004
    Messages:
    17,491
    Likes Received:
    263
    Location:
    halifax
    I got an email from my broker about doing this and the math looked pretty good. I'm not going to do it because I'm in the middle of restructuring the business and need my personal finances to be solid right now.
     
  5. SE

    SE

    Joined:
    Jun 13, 2006
    Messages:
    12,189
    Likes Received:
    12
    Shop around BOOTS. 5.75% isin't a great rate. I just met with clients who are getting 2.75% at Royal (Open). We are offering 4.69 locked in for 5 years. I would lock in again at whatever you can get, we have been in meetings all week discussing the economy and the banks will no longer be able to drop rate substantially with prime much lower.
    If you do refinance at another FI, tell them you have this for a payout penalty at your current institution and if they want your business enough they will pay out your fees along with the mortgage there.

    Also, go to your meeting prepared. If I have a client come in with rates printed off or offers from other FI's in town, I will try to beat the best rate they can get else where.
     
  6. visual_kool

    Well-Known Member

    Joined:
    Jun 18, 2004
    Messages:
    4,690
    Likes Received:
    57
    Location:
    the valley
    The penalty is 3 months interest and a small fee for paperwork. The fee on my mortgage of $160,000 (when I asked 2 months ago) was $1400 + 200
     
  7. SE

    SE

    Joined:
    Jun 13, 2006
    Messages:
    12,189
    Likes Received:
    12
    Fees vary depending on FI.
     
  8. Smokey

    Well-Known Member

    Joined:
    Aug 18, 2003
    Messages:
    12,115
    Likes Received:
    271
    Location:
    Edmonton
    Exactly some have a set payout of 3 months interest or Interest differential over the term, which in my case sucks.
     
  9. SE

    SE

    Joined:
    Jun 13, 2006
    Messages:
    12,189
    Likes Received:
    12
    Some waive the shit all together. If I have a member I like I click waive. Can be done!
     
  10. Smokey

    Well-Known Member

    Joined:
    Aug 18, 2003
    Messages:
    12,115
    Likes Received:
    271
    Location:
    Edmonton
    I still can't figure out why more people don't have variable mortgages? I think they assume when the rate changes, your payment changes, however it does not. The only thing that changes is the portion of your payment that goes to interest versus principal. Historically between 1950 and 2000, 88% of the time you are better off with a variable mortagage.
     
  11. Smokey

    Well-Known Member

    Joined:
    Aug 18, 2003
    Messages:
    12,115
    Likes Received:
    271
    Location:
    Edmonton
    I assume those clients have had this mortgage for a while? I don't think Boots is going to find a Prime minus mortgage right now as i don't know of any FI that is currently offering them right now.

    I wish i could have ported my old mortgage to the new house, i would be paying 2.1% right now.
     
  12. Boots

    Boots
    [OP]
    www.reality-check.ca

    Joined:
    Jun 3, 2003
    Messages:
    74,857
    Likes Received:
    4,640
    Location:
    Halifax
    Thanks for the advice. I have an email into my bank and am chatting with another branch as well :)
     
  13. Smokey

    Well-Known Member

    Joined:
    Aug 18, 2003
    Messages:
    12,115
    Likes Received:
    271
    Location:
    Edmonton
    Try checking a mortgage broker out, they can almost always beat a banks posted rate
     
  14. preluding

    Active Member

    Joined:
    Nov 21, 2004
    Messages:
    1,222
    Likes Received:
    1
    Location:
    Fredericton, NB
    not sure if its useful or not, but I'm at a variable rate of prime minus .6% on about 180k... not complaining in the least right now....its with PC Financial...
     
  15. Duggan

    Well-Known Member

    Joined:
    Jun 27, 2005
    Messages:
    17,691
    Likes Received:
    1,399
    Location:
    Edmonton
    Boots, I have a guy in Bedford that has gotten me pretty good rates, I am variable, but if you want his infomation, send me a PM. He is a broker and has beaten any of the bank quotes I have gotten.
     
  16. kcehc-ytilaer

    is awesome!

    Joined:
    Oct 26, 2005
    Messages:
    872
    Likes Received:
    0
    Location:
    Halifax
    thank you for this....I did not know this. I am not a home owner yet but we are looking in the spring/summer. this is something I didnt know about variable rates.

    I just assumed if affected your monthly pay out.
     
  17. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    It only affects how much goes to interest (obviously). There's a calculated "trigger" rate that if the rate goes above, your monthly payment increases.





    Variable FTW (2.4%).
     
  18. Boots

    Boots
    [OP]
    www.reality-check.ca

    Joined:
    Jun 3, 2003
    Messages:
    74,857
    Likes Received:
    4,640
    Location:
    Halifax
    Scotiabank says it'd be a $9000 penalty to break my current term :wtf:
     
  19. Duggan

    Well-Known Member

    Joined:
    Jun 27, 2005
    Messages:
    17,691
    Likes Received:
    1,399
    Location:
    Edmonton
    It is because you are richer than you think.
     
  20. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    :rofl:

    Even if you get another mortgage through them?
     
  21. Boots

    Boots
    [OP]
    www.reality-check.ca

    Joined:
    Jun 3, 2003
    Messages:
    74,857
    Likes Received:
    4,640
    Location:
    Halifax
    yeah... he's telling me he can lower my rate to 5.45% as a "blended rate" but it will extend my mortgage term from the 3 I have remaining to 5 years. Basically he's saying he'll lock me in on a fresh term for 5.45%

    I'm going to shop around and see what I can find.
     
  22. Boots

    Boots
    [OP]
    www.reality-check.ca

    Joined:
    Jun 3, 2003
    Messages:
    74,857
    Likes Received:
    4,640
    Location:
    Halifax
    If I had only 2 years left in my term the penalty is 3 months interest.
     
  23. Halapine

    Resident frenchy

    Joined:
    Aug 4, 2003
    Messages:
    3,896
    Likes Received:
    1
    Location:
    Moncton and Fredericton
    shop around, some places will pay your penalty to get your business. When i baught my 1st house few months back i took open variable rate, I can lock in at anytime for 1% higher then my variable. Right now i'm sitting at 2.75% and i'm with BMO :)
     
  24. Scott

    rawr

    Joined:
    Jun 25, 2004
    Messages:
    37,264
    Likes Received:
    1,560
    Location:
    East Jeddore NS
    This is something I need to look into. We locked in 3 years ago on a 5 year term at 4.6% I think. So where are rates gonna be in two years? My luck they'd be up around 17% or some BS number :lol:
     
  25. pmachan

    Active Member

    Joined:
    Jul 8, 2003
    Messages:
    1,906
    Likes Received:
    9
    I just locked a 5 year at 4.49% with Royal in Bedford.
     
  26. N / A

    Active Member

    Joined:
    Sep 3, 2003
    Messages:
    4,700
    Likes Received:
    8
    Location:
    Halifax
    prime -.8 here

    Boots I can give you my brokers name if you want he beat all the numbers I gave him, even the ones I made up
     
  27. Benedict

    Formerly Topdawgg

    Joined:
    Aug 12, 2003
    Messages:
    9,138
    Likes Received:
    0
    Location:
    Halifax

    Im locked in at 4.75.. I was pretty happy with it a year ago, now I see everyones variable that is super low.... hmmm.
     
  28. billybob

    The Schooner, the better.

    Joined:
    Aug 14, 2003
    Messages:
    51,422
    Likes Received:
    251
    I locked in at 4.755 almost 2 years ago and was happy as a pig in shit.



    how the fuck do you get a variable Prime less mortgage right now???????
     
  29. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    Can't
     
  30. billybob

    The Schooner, the better.

    Joined:
    Aug 14, 2003
    Messages:
    51,422
    Likes Received:
    251
    I will find one. fuckin skanks
     
  31. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    When I signed all my papers in September my lawyer said, "Wow that's a low rate. Wont get that now."

    Subprime is a dinosaur now.
     
  32. billybob

    The Schooner, the better.

    Joined:
    Aug 14, 2003
    Messages:
    51,422
    Likes Received:
    251
    My lawyer thought a 5 yr fixed at 4.75 was a misprint a year and a half ago. :roflugh:
     
  33. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    It's all relative. A year and a half ago that was a great rate.

    Now it's decent. :shrug:
     
  34. billybob

    The Schooner, the better.

    Joined:
    Aug 14, 2003
    Messages:
    51,422
    Likes Received:
    251
    its still decent, but since we're gonna be here for a while now, I want to get a good variable.
     
  35. Muricane

    MY AV IS ME

    Joined:
    Jan 26, 2004
    Messages:
    39,426
    Likes Received:
    169
    A good variable is prime, and those are few and far between.

    p + .5 or p + 1 are more likely. That's still 4% right now. :shrug:
     

Share This Page