[闲聊] 最近拿到的五年利率？

[oread]

Now this is confusing, I just called BMO, and was told that the interest on mortgage is calculated DAILY, and that this is the norm for all other financial institutions.

最初由 挺傻 发布
偶如果没记错的话，BMO的浮动利率是monthly compound的，所以prime－0.8%在利率上和prime-0.75% semi-annual compound的其实基本没啥区别。
但是OPEN的TERM到还真是个不错的OFFER！

如果谁要是想SWITCH MORTGAGE或者REFINANCE的话来谈谈，也许能找到不错的OFFER.

 

[bello]

Scotia bank has 5 yr fully open variable rate = 3.5% that is -0.75% of prime

 

[oread]

The Scotia Flex Value mortgage is NOT a fully open mortgage.

 

[oread]

CORRECTION!

Just called BMO again, you CAN carry-over the cash-back if you stay with BMO!

 

[bello]

最初由 渐渐 发布
The Scotia Flex Value mortgage is NOT a fully open mortgage.

For you can be FULLY open

 

[wohaha]

ops

up

 

[1000 islands]

Ting Sha, could you please provide us a list of banks who are using semi-annual compounding? I only know TD and Royal are using monthly compounding, ING is using semi-compounding. How about CIBC, BMO, Scotia, etc.? Thanks.

 

[挺傻]

I am doubt BMO offers a fully open variable rate or a fully open term. That's totally different.
It's generous for them to offer a fully open term with a variable rate at prime-0.8%, cashback carry over and waive all penalties.
Scotia flex value mortgage is also a fully open variable rate mortgage, but not a fully open term.

Interest was calculated daily, that's right.But for variable rate mortgage,different bank may use different compounding ways.

 

[挺傻]

Scotia UVRM compounded monthly.
Scotia value flex mortgage compunded semi-annuly.
偶简单看了一下那几家银行的网站，没有发现他们对浮动利率做啥说明，所以目前不大清楚。明天看看资料再来说话。

 

[吾言]

TD compounds semi-annually.

 

[笑傲江湖]

All fixed rate mortgages compound semi-annually, and I think that is the law in Canada. Please correct me if I am wrong.:glowface:

 

[oread]

Not sure about the law though, but I believe that's the norm used in Canada. Americans on the other hand use annual compounding.

Can someone explain to me the definition of "interest paid daily"? For example, if your APR is 5%, then daily interest is 5%/365 ma? How does this relate to semi-annual compounding? Does this mean that flex rate is actually compounded annually?

最初由 xyz139 发布
All fixed rate mortgages compound semi-annually, and I think that is the law in Canada. Please correct me if I am wrong.:glowface:

 

[笑傲江湖]

How often does it compound though?

 

[笑傲江湖]

APR 5%

Effective rate - compounding annually: 5%
Daily Rate: 5%/365

Effective rate - compounding semi-annually: 5.0625%
Daily Rate: 5.0625%/365

Effective rate - compounding monthly: 5.11619%
Daily Rate: 5.11619%/365

 

[笑傲江湖]

Effective rate calculation: [(1 + APR/# of compounding period)^# of compounding period]-1

For example: compounding monthly with an APR 5%;

[(1+5%/12)^12]-1