如何选MORTGAGE?

[1000 islands]

刚买房子，正在找mortgage,不知是选fixed的还是variable的。有个broker说给我5年fixed 4.55%，你们觉得呢？

 

[oread]

4.55 is a good rate.

 

[1000 islands]

Thank you, Jian Jian. Do you think what kind of mortgage is good, fixed or variable? I really don't know how to choose. I think it is the best time to get a good fixed rate now, however, if the interest rate go up in a slow pace, variable rate is better than fixed rate. How do u guys think?

 

[RX7-for-sale]

4.55% is a good rate for 5 years. However, there are some fees may associte with the mortgage such as :
1) mortage application fee (most banks will not charge this)
2) CMHC application fee (if your down payment is less than 25% of the purchasing price, and you need to purchase the high ratio mortgage insurance; then there is a $125 application fee; however, there are many banks willing to pay for this fee)
3) CMHC high ratio mortgage insurance (this is the mortage insurance, the buyers need to pay this fee if their downpayment is less than 25% of the purchasing price, banks will not pay for this)
4) there are may be property appriasal fee, usually cost $200 to $300, and most banks will pay for this as well.

When doing the mortage shopping, you will need to take into the account of the fees mentioned aboved.

It really depends on your personal preferences, some people will choose the variable rate, and some choose the fixed rate. If you choose the variable rate, make sure there is an option for locking into a fixed rate mortage when rates are going up.

 

[nicestuff]

4.55% is very good rate.

 

[oread]

If you worry about such thing, get a mortgage insurance.

 

[笑傲江湖]

4.55% is a good rate.

 

[西出阳关]

4.55%

 

[1000 islands]

Thank you all guys.

I got another question to ask you guys.
There are two brokers working for different banks to give me two kinds of variable rate. One is 5 years variable rate, primary rate - 0.85 for whole 5 years. Another is also 5 years variable rate, primary rate - 1.1% for the first year, and then primary rate - 0.8% for the rest four years. Which one is better? Thanks in advance.

 

[挺傻]

现在的利率给的真够低的了.4.55%五年真是一个非常好的利率!
不知道是不是所有的后续事宜都能够一样顺畅,比如refinance,或者是credit范围内的产品转换.anyway, good luck!

 

[悠着点]

Second one is better

 

[挺傻]

不知道这两个RATE都是多长时间COMPOUND的，假设他们都是一样的COMPOUND频率，第二个是好点，不过五年下来，以10万为例，也就少付了70块利息。

 

[Boralette]

1000 islands, don't know if you have signed up that mortgage. If not, make sure the prepayment option and check out the payment frequency. Given 4.55% for five years, if you make bi-weekly contribution at the end of five years you save more interest on the principal than making monthly payments… Good luck and enjoy the ownership.

 

[oread]

最初由 挺傻 发布
不知道这两个RATE都是多长时间COMPOUND的，假设他们都是一样的COMPOUND频率，第二个是好点，不过五年下来，以10万为例，也就少付了70块利息。

 

[1000 islands]

Thank you guys for your help.

Thank you, Borallete. I have not signed up any mortgage with any bank. I don't know the defferent prepayment frequency will also generate the defference of interest. I need check it out. Good to know.