Renew My Variable Mortgage

[Smoky]

Hi all,

I have my variable mortgage with RBC almost one year. Now I got a letter to renew my mortgage. I am completely confused this is renew every year or every 5 years? Is it possible to keep my current variable rate for next year or I have to get a new rate?

Any advises will be appreciated.

 

[Timothy's]

How is your mortage term. It is 5 year variable or 1 year variable. If it is 1 year you have to renew it. If it is 5 years then you still have 4 years before renew.

 

[ccc]

If it was only a one-year term, you are lucky. You could get a much better rate this time.

 

[maple]

If it was only a one-year term, you are lucky. You could get a much better rate this time.

He has a variable mortgage. I think in February last year, he probably got prime -1%. but this year banks are offering prime +0.8%

 

[ccc]

He has a variable mortgage. I think in February last year, he probably got prime -1%. but this year banks are offering prime +0.8%

The world was turned upside down.

 

[Smoky]

I got 5-year variable mortgage rate. It should remain 4 years ahead.
But I don't know why they sent me a letter for renew.
My question is that I want to keep my current variable rate if it is possible.

 

[Pino colada]

If you had a five years variable rate, the bank is oligated to honour it.

I have heard from the radio that many banks were sending letters to clients who had variale prime-minus-rate, to lure them to a five year fixed term rate.

The radio host was teasing the banks by saying: "if the situation is reversed will the banks send their clients a letter?"

 

[Smoky]

I talked to my bank, the representative said it is a mistake after he checked my docs.
I hope it is just a small mistake for the bank.
So if you get a letter from your bank about renew your mortgage this time, you really need to call them first, to make sure you are in the correct time to renew your mortgage.

Thanks again for who replied my post, I really appreciated your help.