Help: house mortgate

[Amanda75]

I'm considering change my mortgage Ins. I used Bank of Montreal before. I would like to change to TD or CIBC. I heard that they have better rates now. I'm also considering mortgage brokers. Does anybody know what rate it is now for a 3-5 yrs term? Does anybody have experience using a broker before, any recommandation?
Thank you very much! :thanks:

 

[有去无回]

I am switching from National Bank to BMO :lol: :lol2:

 

[LaoSong]

Talk to your bank first, and say what rate they can offer you to avoid penalty. Usually the bank will charge you three month payment for the penalty if you want to switch to another bank. But if you stay with them, they may waive it and give you a resonale rate (altough it may still be a little higher than other bank's)

 

[oread]

Penalty is usually the higher of the 1)3 months interests or 2)rate differential in most Canadian fianancial institutions.

Rate differential formula:
Outstanding balance on your mortgage * Remaining months on your mortgage * (Current rate - New rate [in decimal format])

For example, if:
Your balance = 150,000
Remaining term = 48 months
Current rate = 5% = 0.05
New rate = 4% = 0.04

you then have to pay:
150,000 * 48 * 0.01 = 7200 in penalty.

Rate differential is much more significant when you are still in your closed period of the mortgage. Normally on a 5 years fixed term mortgage, the first 3 years is considered the closed period.

 

[土鳖虫]

最初由 渐渐 发布
Penalty is usually the higher of the 1)3 months interests or 2)rate differential in most Canadian fianancial institutions.

Rate differential formula:
Outstanding balance on your mortgage * Remaining months on your mortgage * (Current rate - New rate [in decimal format])

For example, if:
Your balance = 150,000
Remaining term = 48 months
Current rate = 5% = 0.05
New rate = 4% = 0.04

you then have to pay:
150,000 * 48 * 0.01 = 7200 in penalty.

Rate differential is much more significant when you are still in your closed period of the mortgage. Normally on a 5 years fixed term mortgage, the first 3 years is considered the closed period.

所以，按上述公式，假如Current rate 非常接近New rate 的时候，就应该考虑退
出当前的Mortgage合约，因为这时可以只付最小或不付penalty。当然，人们会说，
在Current rate 非常接近New rate 的时候，退出当前的 Mortgage合约还有意义
吗？我觉得：假如你判断出新的一轮长期利率将要走低，那么这时候退出当前的Mortgage合
约正当其时。

 

[oread]

Bingo! Either that or when you are closer to the open period of your mortgage. Also remember to take advantage of the POSTED rate (usually about 1 full percentage higher than the real rate) from the banks during your negociation.

 

[feima]

broker: cai min
tel:2244530-234
She is very nice.

 

[haoren1]

If the current rate is lower than the one you have, you can renew your mortgage to take advantage of the lower rate. There is no penalty for that. I am with BMO. I had a 4.25% three year fixed rate, which would mature in the middle of next year. Because the bank has lowerd its rates, I renewed it before the 3 year term was up. I got a 4 yr rate at 4.29%. I am good for the next 4 years. If the rates drop again, i will renew it again.

Go see your bank rep. and negotiate for a better rate.

 

[haoren1]

If you switch to another bank, you will have to pay penalty, but if the bank you are switching to is willing to pay the penalty for you, you have nothing to lose. Talk to the bank. They may pay your penalty.

 

[小帆]

Does a mortgage broker charge from the clients? For example, Cai Min?

 

[ASICS]

最初由 haoren1 发布
If the current rate is lower than the one you have, you can renew your mortgage to take advantage of the lower rate. There is no penalty for that. I am with BMO. I had a 4.25% three year fixed rate, which would mature in the middle of next year. Because the bank has lowerd its rates, I renewed it before the 3 year term was up. I got a 4 yr rate at 4.29%. I am good for the next 4 years. If the rates drop again, i will renew it again.

Go see your bank rep. and negotiate for a better rate.

Who is your mortgate representative by the way?

 

[haoren1]

最初由 ASICS 发布


Who is your mortgate representative by the way?

I am with BMO Kanata Signiture Branch.

 

[Jane]

最初由 小帆 发布
Does a mortgage broker charge from the clients? For example, Cai Min?

The mortgage broker doesn't charge you anything such as job agent.
"They have private line with the banking system and work fast than your branch representation." This is what my branch representation told me.

 

[oread]

This is not completely accurate. What haoren said is only true when the rate change is within a certain range, say .4 of a percentage (I don't remember the exact rate). However when the rate drop is more than that limit, the bank will have to charge you a penalty, regardless of whether you stay with them or switch to another one.

最初由 haoren1 发布
If the current rate is lower than the one you have, you can renew your mortgage to take advantage of the lower rate. There is no penalty for that. I am with BMO. I had a 4.25% three year fixed rate, which would mature in the middle of next year. Because the bank has lowerd its rates, I renewed it before the 3 year term was up. I got a 4 yr rate at 4.29%. I am good for the next 4 years. If the rates drop again, i will renew it again.

Go see your bank rep. and negotiate for a better rate.