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04-04-2020, 12:07 PM
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Join Date: Dec 2014
Location: Near Longview AB
Posts: 543
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Quote:
Originally Posted by Lefty-Canuck
Solid point! I guess my concern is how much is it likely to increase in the next 6 months.
LC
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Nobody knows really, everybody can guess and speculate and some might even guess correctly, but world events change things very quickly in ways nobody could predict.
Its all about the risk/reward scale. Whats the risk of it going up versus the reward of holding out in the hope of something better. In my opinion, and its only my opinion, the risk of waiting far outweighs any potential reward of waiting. So I'd hedge because if I'm wrong today my cost is nominal, if I'm wrong later my cost could be huge, and we are talking about my family home not some speculative stock purchase .
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04-04-2020, 12:17 PM
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Join Date: Mar 2008
Location: Sylvan Lake
Posts: 3,411
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Quote:
Originally Posted by Pixel Shooter
typically the most competitive time for mortgage rates is the next 3mths. so hang in there.
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Risk is very high right now. I am not an expert by any means but people will be defaulting on everything from mortgages to basic monthly service fees. The banks will take every measure to protect themselves and make a profit. The government is offering loan protection so the banks have safe places to invest without risk. It may go lower but I wouldn't expect anything normal this summer.
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04-04-2020, 01:03 PM
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Join Date: Jun 2015
Posts: 23
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Very high risk? isn't that what CMHC is for? a insurance policy paid by the home owner for the banks protection? lol
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04-04-2020, 07:36 PM
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Join Date: Mar 2008
Location: Sylvan Lake
Posts: 3,411
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Quote:
Originally Posted by eric-kam
Very high risk? isn't that what CMHC is for? a insurance policy paid by the home owner for the banks protection? lol
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Until people can't make their credit card payments, and then they can't make the two car payments and then people can't even pay all those nasty fees where all the bank profits come from and then businesses start to default in spite of government help and then banks up the fees and interest rates to try to cover their loses from those that are still able to pay lol
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04-05-2020, 04:38 PM
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Join Date: Aug 2013
Location: Calgary
Posts: 531
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Had a rate-war between a broker and my bank.... RBC.... started looking mid Jan. and started at 3.2 with RBC then the broker got to 2.9 the bank matched it then the broker got 2.54 then eventually down to 2.44.... the closest the bank could get to the broker was 2.54 - going with the broker I would lose the multi-product discount with the bank and when we did the math the amount we saved with the broker didn't amount to much when you add the bank fees over 5 years and with the convenience of having our banking all in one place and easy access it wasn't worth the trouble of swapping over with the broker to Merix. Signed with RBC on Friday....with 2.54% and 5 years..
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04-05-2020, 04:54 PM
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Join Date: May 2009
Location: Edmonton, AB
Posts: 1,358
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Think my broker just screwed up and cost me some $$. Asked for a pre approval for 2 properties, a house and a condo. She came back with a single pre approval, and said it was good for both properties up to the approved maximum $$, combined.
Discount rates are now drying up and I had locked in at a variable rate of prime -.75, so about 1.7% currently. I finalized offers on both a house and a condo in the last 2 days, sent her the docs for final approval, and now she's evidently waiting to hear back from the district manager or somebody from First National to see if they'll cover both under the same pre-approval. According to her, she was told "verbally" by whoever she deals with to submit it that way, but now she's all of a sudden concerned they will only honour one of the mortgages on the pre-approval, and I'll have to get another approval on the other mortgage. Sounds like she dropped the ball and I may end up with a higher rate on the condo mortgage. Think she mentioned a 5 year fixed at 2.64 so not horrible, but I wasn't very pleased.
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04-15-2020, 02:52 PM
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Join Date: Jul 2009
Location: GP AB
Posts: 16,208
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Well, I tried Scotia again today to see where things were at, they finally gave me something that I was happy with. 5 year variable closed and convertible, at 2.44%. I don't see that going up any time soon (and could go down another .25 if BofC moves to zero, which is still a strong possibility).... but if things do start moving up in a hurry I can lock it in for balance of term. I was hoping for something at 2.25% or less but I can live with that.
__________________
'Once the monkeys learn they can vote themselves a banana, they'll never climb another tree.'. Robert Heinlein
'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone
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04-15-2020, 03:36 PM
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Join Date: May 2009
Location: Edmonton, AB
Posts: 1,358
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Quote:
Originally Posted by Twisted Canuck
Well, I tried Scotia again today to see where things were at, they finally gave me something that I was happy with. 5 year variable closed and convertible, at 2.44%. I don't see that going up any time soon (and could go down another .25 if BofC moves to zero, which is still a strong possibility).... but if things do start moving up in a hurry I can lock it in for balance of term. I was hoping for something at 2.25% or less but I can live with that.
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Nice snag!! Looks like you got Prime -.01 then? The best they'd give me on a variable last week was Prime +.10, which would be at 2.55% currently. I needed to talk to your guy, lol. First National wouldn't honour my pre-approved rate of Prime -.75 (currently at 1.7%) for more than one property, so I placed the house with them (duh), but refused to give them the mortgage on the second property just out of principle. Placed it with TD at 2.79% 5 yr fixed.
So, I'll have one at 5 yr variable, currently 1.7%, and the other at 5 yr fixed of 2.79%. Figured it gives me a bit of a balanced exposure considering the uncertainty of the next few years, the variable at +.10 would save me money immediately, and I generally like variables over fixed, but I'd had it with First National by that point.
My mortgage broker IS however kicking me back her commission to help compensate for the loss of the excellent variable rate on the second property. Sounds like she probably made an assumption on her part, and it was wrong. She still claims she was told she should submit it that way, but should have confirmed it when I voiced concern over the way it was written rather than just ran with it and told me it was good.
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04-15-2020, 03:57 PM
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Join Date: Jul 2009
Location: GP AB
Posts: 16,208
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That's too bad you didn't get them both at a the variable rate, that's a killer rate. I just did a renewal over phone today, pretty painless. Last renewal I went to broker and spent weeks submitting paperwork for personal and business, and finally just said screw it and renewed with Scotia over phone in 5 minutes.
Having funds to pay off your small mortgage 5x over apparently means nothing, as does having 75+% equity in your home, or having a credit rating over 800. Nope. They just look at income and get testy. When you are self employed not showing a big income is the name of the game.....but anyway. Mortgage renewals can be such a hassle. Glad Scotia gave me that rate. It is only a point under prime, but still good. Much better than the 13% on my first home!
__________________
'Once the monkeys learn they can vote themselves a banana, they'll never climb another tree.'. Robert Heinlein
'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone
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04-15-2020, 04:08 PM
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Join Date: Nov 2016
Location: Edmonton
Posts: 6,496
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Quote:
Originally Posted by reddeerguy2015
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How do we know YOU aren't Kate Racz though? Could be doing the shameless plug thing.
I'd definitely hunt moose with you tho Kate.
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You matter. Unless you multiply yourself by the speed of light squared... ...then you energy.
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04-15-2020, 04:15 PM
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Join Date: Feb 2014
Location: Edmonton
Posts: 23
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I'm with Scotia Bank with one of my properties. My other properties I using a broker. Funny thing is I've moved all my properties to my broker (Dominion) which was cheaper in the past, However I was moving a condo I own this last month and Scotia cut the rate lower than my broker.
I feel they are getting hungry and seems that they finally willing to deal.
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04-15-2020, 06:00 PM
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Join Date: Dec 2017
Posts: 93
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Other then the one variable rate none of the rates discussed are any good. You could get 2.49 locked in over 5 years last december. If you shop around now its available with some lenders.
I locked in this december and ended up with 2.59. One of my other properties is also with scotiabank. When it comes to renewals they are the worst to deal with.
I can renew with them now but im holding off closer till summer to see how rates go.
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04-15-2020, 06:24 PM
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Join Date: Jul 2009
Location: GP AB
Posts: 16,208
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My renewal wasn't due till mid June, but the way things are looking I expect banks to start pricing a lot more risk into their rates, and dont see them going down. More likely if the markets really tank and the covid lockdown continues, rates are going up. That's my Crystal ball Reasoning, maybe I'm wrong, but either way I'm ok with 2.44% variable.
__________________
'Once the monkeys learn they can vote themselves a banana, they'll never climb another tree.'. Robert Heinlein
'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone
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04-15-2020, 06:47 PM
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Join Date: Dec 2017
Posts: 93
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Im banking on the opposite. I cant see them going up as the 2.49 to 2.79 to 5 yr rates have been around forever now. I think many of us assumed rates would be more competitive by now but its clear thats not happening.
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04-15-2020, 07:11 PM
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Join Date: Jul 2009
Location: GP AB
Posts: 16,208
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Quote:
Originally Posted by edmsmith
Im banking on the opposite. I cant see them going up as the 2.49 to 2.79 to 5 yr rates have been around forever now. I think many of us assumed rates would be more competitive by now but its clear thats not happening.
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In general, I hope you are correct. Back in January I was expecting rate cuts, and I was right on that. A full 100 basis points. But the banks didn't follow suit. If you are correct though, it would mean that the economy isn't on fire and collapsing on itself. But, as we have been hearing ad nauseam, these are 'unprecedented time's....and just because rates have been hanging around forever, doesn't mean they will continue to do so. The global financial situation is fragile, and propping it up with borrowed government money is just adding risk I believe.
I hope you are right though about rates, truly. But the default rate is going to skyrocket with people out of work.
Just an example of what I was saying, and this should alarm anyone who is paying attention....maybe the Canary in the coal mine is already dead.
https://www.zerohedge.com/markets/ho...e-huge-problem
__________________
'Once the monkeys learn they can vote themselves a banana, they'll never climb another tree.'. Robert Heinlein
'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone
Last edited by Twisted Canuck; 04-15-2020 at 07:17 PM.
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08-15-2020, 01:31 PM
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Join Date: Dec 2010
Location: Look behind you :)
Posts: 27,774
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Well I still haven’t locked into a renewal... 2.19% fixed 5 year is looking good though.
LC
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08-15-2020, 02:01 PM
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Join Date: Feb 2016
Location: West
Posts: 210
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All bets are off as far as I’m concerned...economy is collapsing..lock it for 5 years and be prepared to pay higher rates in the future..pay down other debts and prepare for inflated prices and taxes..and full digital currency.
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08-15-2020, 03:20 PM
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Join Date: Jan 2008
Location: Where the Wild Wind Blows...
Posts: 2,349
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Quote:
Originally Posted by Lefty-Canuck
Well I still haven’t locked into a renewal... 2.19% fixed 5 year is looking good though.
LC
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We locked in back in May at 2.39 for five years and it went down to 2.14 in June, so we are happy with that as our new term starts Monday!
P.S. Thanks to Tim Lacroix, our broker (also an AO sponsor)!
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Saving one animal won't change the world, but the world will change for that one animal!
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08-15-2020, 05:13 PM
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Join Date: Mar 2009
Location: Sherwood Park
Posts: 4,318
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Sent u a pm lefty
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08-17-2020, 08:39 AM
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Join Date: Nov 2019
Posts: 80
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Keep in mind Brokers don't always get you the best rate anymore, my last mortgage I got better rates going directly to a bank and before that I always went through my broker. HSBC & Tangerine are both below 2% on fixed 5yr mortgages, be sure to read the fine print though as HSBC has a high payout penalty and generally are very slow to deal with... See link below for a good comparison to help with shopping.
https://www.superbrokers.ca/tools/mo...es-comparison/
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08-17-2020, 10:07 AM
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Join Date: Apr 2008
Location: alberta
Posts: 1,927
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Quote:
Originally Posted by j335
Keep in mind Brokers don't always get you the best rate anymore, my last mortgage I got better rates going directly to a bank and before that I always went through my broker. HSBC & Tangerine are both below 2% on fixed 5yr mortgages, be sure to read the fine print though as HSBC has a high payout penalty and generally are very slow to deal with... See link below for a good comparison to help with shopping.
https://www.superbrokers.ca/tools/mo...es-comparison/
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consult your local foreclosure lawyer when wanting to pay out a mortgage
the law used to be a decade ago that
BANKS CANNOT CHARGE A PREPAYMENT PENALTY IF YOU LET THE MORTGAGE FALL INTO ARREARS THE LETTER OF DEMAND CAN ONLY ASK FOR THE PRINCIPLE OWED. plus interest of course and costs if you fail to pay it out right away
situation still exists today but the banks official position I s
WE KNOW NOTHING
and to be blunt 95% of lawyers will tell you must pay the 3 months penalty interest because THEY ARE PAID BY THE BANKS AND WILL LOSE THE. ORTGAGE WORK IF THEY TELL YOU NOT TO PAY PENALTY INTEREST
funny how that works, eh. follow the money
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08-17-2020, 10:12 AM
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Join Date: Oct 2011
Location: Edmonton
Posts: 1,239
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Make sure you read the fine print with a broker.
Our last mortgage was through a broker. Long story short, we were not able to get out of the brokered term early (only 6 months) and had to carry 2 mortgage payments for the last 6 months of the previous term. All in the fine print....
The good news was, we were able to spruce up the old place and get a bit more for it when it sold.
__________________
Long gone are the times when things were made of wood, and men made of steel.
author unknown
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08-17-2020, 10:32 AM
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Join Date: Feb 2012
Location: Edmonton (shudder)
Posts: 4,583
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I missed this thread but I used Tim Lacroix to purchase my cabin and they were awesome. I was going to use him for my house renewal but I had a chip on my shoulder with ATB and kinda went to war with them and ended up with a rate that was phenomenal. Upon the next renewal and my cabin renewal I’m confident that I will be using Tim though. Great company. Makes things very easy. I’m in Edmonton and they are in Calgary and everything was done easily with no travel.
EDIT: Nevermind I guess I was post #4 and missed it. Now I’m just repeating myself.
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