[寻找] MORTGAGE
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Recommended variable rate mortgage products:
1. Straight discount on prime over 5 year period
TD Closed Variable Rate Mortgage (VRM)
Interest rate Prime - 0.75%
Term 5 years
Prepayment privilege 15% + double up
Prepayment penalty 3 months interest
Fully open after 5 years
Rate used when converting to fixed term Slightly higher than the best discounted rate
2. Straight discount on prime with (some) prepayment flexibility
Firstnational Corporation Maximizer
Interest rate Prime - 0.60%
Term 5 years
Prepayment privilege 15% + double up
Prepayment penalty 3 months interest if preterminated during the 1st year, 2 months interest during 2nd year, 1 month interest on the 3rd year
Fully open after 3 years
Special features Free repair warranty for owner-occupied
Rate used when converting to fixed term best discounted rate
3. Lower initial rate mortgage with (some) prepayment flexibility
Bank of Montreal Flexible below prime mortgage
Interest rate Prime - 2.25% for 3 months; Prime - 0.375 thereafter
Cashback 1%
Term 6 years
Prepayment privilege 20% of mortgage amount per year + increase payments by 20%
Prepayment penalty 2 months interest if prepaid during the first 3 years
Fully open after 3 years
Special features Take a break option, Family care option, Mortgage cash account
Rate used when converting to fixed term discounted rate if conversion is done after 12 months
4. Variable rate with full flexibility
Firstline Open Adjustable Rate Mortgage
Interest rate Prime - 0.40%
Term 5 years
Prepayment privilege 100%
Prepayment penalty 100%
Fully open after Fully open
Special features Free home repair warranty for owner-occupied
Rate used when converting to fixed term discounted rate
Sources: http://www.bcmortgage.ca/mortgage_rates_bc.htm
Under Variable interest rate mortgage Section
Click Recommended variable rate mortgage products link
1. Straight discount on prime over 5 year period
TD Closed Variable Rate Mortgage (VRM)
Interest rate Prime - 0.75%
Term 5 years
Prepayment privilege 15% + double up
Prepayment penalty 3 months interest
Fully open after 5 years
Rate used when converting to fixed term Slightly higher than the best discounted rate
2. Straight discount on prime with (some) prepayment flexibility
Firstnational Corporation Maximizer
Interest rate Prime - 0.60%
Term 5 years
Prepayment privilege 15% + double up
Prepayment penalty 3 months interest if preterminated during the 1st year, 2 months interest during 2nd year, 1 month interest on the 3rd year
Fully open after 3 years
Special features Free repair warranty for owner-occupied
Rate used when converting to fixed term best discounted rate
3. Lower initial rate mortgage with (some) prepayment flexibility
Bank of Montreal Flexible below prime mortgage
Interest rate Prime - 2.25% for 3 months; Prime - 0.375 thereafter
Cashback 1%
Term 6 years
Prepayment privilege 20% of mortgage amount per year + increase payments by 20%
Prepayment penalty 2 months interest if prepaid during the first 3 years
Fully open after 3 years
Special features Take a break option, Family care option, Mortgage cash account
Rate used when converting to fixed term discounted rate if conversion is done after 12 months
4. Variable rate with full flexibility
Firstline Open Adjustable Rate Mortgage
Interest rate Prime - 0.40%
Term 5 years
Prepayment privilege 100%
Prepayment penalty 100%
Fully open after Fully open
Special features Free home repair warranty for owner-occupied
Rate used when converting to fixed term discounted rate
Sources: http://www.bcmortgage.ca/mortgage_rates_bc.htm
Under Variable interest rate mortgage Section
Click Recommended variable rate mortgage products link
keen_observer
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I will go for the variable (prime -0.75). Few things you may want to know:
1) how is the interest being calculated, compouned monthly, semi-annually, or annually?
2) What is the payment option? Monthly, bi-weekly accelerated? bi-weekly?
3) any option to convert to a fixed term mortgage without penality?
1) how is the interest being calculated, compouned monthly, semi-annually, or annually?
2) What is the payment option? Monthly, bi-weekly accelerated? bi-weekly?
3) any option to convert to a fixed term mortgage without penality?
There are some compounded monthly, for example, PC Financial... The link below aslo identities several others. Unfortuantely, don't know the name of the issuer...
http://www.canadian-mortgages.com/af/mortgage_variable2.htm
http://www.canadian-mortgages.com/af/mortgage_variable2.htm
我还是不明白:
我认为bi-weekly, semi-monthly even monthly payment 不应有compounded monthly, semi-annually or annually的问题.因为每次payment 已包括了所有应付的利息,也就是不存在利滚利的问题.
只有当compounded monthly, 并且payment超过monthly,例如每5个星期payment,才存在利滚利.这时才需要考虑用compounded semi-annually or annually.
我的理解是compounded monthly, semi-annually or annually是一样的,因为一般都是bi-weekly, semi-monly or monthly payment.
请指出我不对的地方,最好有例子.
我认为bi-weekly, semi-monthly even monthly payment 不应有compounded monthly, semi-annually or annually的问题.因为每次payment 已包括了所有应付的利息,也就是不存在利滚利的问题.
只有当compounded monthly, 并且payment超过monthly,例如每5个星期payment,才存在利滚利.这时才需要考虑用compounded semi-annually or annually.
我的理解是compounded monthly, semi-annually or annually是一样的,因为一般都是bi-weekly, semi-monly or monthly payment.
请指出我不对的地方,最好有例子.
Your payment amount depends on the real or the effective rate not the stated rate... and the effective rate is depends on the frequency of the compounding... Any bank website will give you an equivalent effective rate for their posted (or stated) rate - required by the law...
keen_observer
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Very good, and thank for all the useful information.
oread
新手上路
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This is correct. A simpler term for compound rate is "interest on interest", therefore, the longer the term, the less the chance of "interest on interest", hence less interest paid period.
However do not confuse the concept of rate compounding with rate change. Rate change usually happens immediately following prime rate change set by Bank of China. Rate compounding is fixed throughout the term of your mortgage.
However do not confuse the concept of rate compounding with rate change. Rate change usually happens immediately following prime rate change set by Bank of China. Rate compounding is fixed throughout the term of your mortgage.
