Mortgage Broker

[Mike Oxlong]

Hello all in CP land,

I have somewhat recently started a new career as a mortgage broker.

If anyone is in need of financing for a new home, rental property or vacation property I would be happy to help them out.

If you find that you are in debt and would like to refinance your current residence I can help you put a plan together for that as well.

I work with over 40 different lenders so I have TONS of of different programs and options available to me. We can quite often beat the interest rate you are getting with your bank as well.

If your current mortgage is up for renewal please feel free to contact me and I will let you know if you are getting a good interest rate from your bank. Often times they send out renewal notices just assuming the client is going to renew without rate shopping. Lots of times they are right and the client is locked into a rate that is way higher than they should be paying.

We have lots of programs for people who are self employed as well.

Best part of using a mortgage broker is that my services are free. I work for you to find you the best program for your needs.

Any questions please feel free to contact me. I'll do my best to answer everyone's questions ASAP.

[Sample00]

congrats on the career change.
Mortgage Brokers are a good thing. I wish you continued success!

[Burninator]

I think you had sent me a PM a while back about this. If I was interested in getting a "quote" for how much I could borrow, what sort of information would you need?

[Mike Oxlong]

I think you had sent me a PM a while back about this. If I was interested in getting a "quote" for how much I could borrow, what sort of information would you need?

I would need you to fill out a quick application. Once I have a picture of your personal financial position I can give you a really good idea of how much you can borrow.

Send me a PM if you are interested with an email address and we can go from there.

[Mike Oxlong]

Just wanted to send everyone an FYI.....

5 year fixed rates have been dropping quite significantly over the past few days. Best rate I have seen lately is 5.25% for 5 years. 5.65% was the best just a couple weeks ago.

Good time to buy or refinance if you are lookin for a 5 year fixed term.

Feel free to ask any mortgage related questions.

[fotze]

My rate is 5.05% should I refinance? Just kidding.

Just an oddball question. After my 5 year term is up, can I repay the whole mortgage at that point without penalty or do I still get penalized based on the 25 year amortization.

[Sylvanfan]

How do lenders view someone who works casual shift but gets really sporadic hours? Would they do it based on a working history to date type of thing?

I'm not one of your typical Western Canadians with a 125k per year job (like Fotze makes in the first quarter), so I have to make my wife go out and earn her keep too. Problem is...her hours are extremely sporadic...and lets face it...if you don't have a household income of that 125k a year...you ain't buying a place that's not a condo in all reality. Especially where I'm trying to live now where its 300 grand for your average piece of land with a house that no longer meets the building code for safety, and 500 or more for a place you Might be able to live in.

[Mike Oxlong]

How do lenders view someone who works casual shift but gets really sporadic hours? Would they do it based on a working history to date type of thing?

I'm not one of your typical Western Canadians with a 125k per year job (like Fotze makes in the first quarter), so I have to make my wife go out and earn her keep too. Problem is...her hours are extremely sporadic...and lets face it...if you don't have a household income of that 125k a year...you ain't buying a place that's not a condo in all reality. Especially where I'm trying to live now where its 300 grand for your average piece of land with a house that no longer meets the building code for safety, and 500 or more for a place you Might be able to live in.

It can vary a bit from lender to lender. But basically they are going to take an average of the last couple years of employment to average things out. If she has some decent job history and she can get a letter from her employer stating how many hours per week or month she typically works then it shouldn't be too much of an issue.

[Mike Oxlong]

My rate is 5.05% should I refinance? Just kidding.

Just an oddball question. After my 5 year term is up, can I repay the whole mortgage at that point without penalty or do I still get penalized based on the 25 year amortization.

You should be able to pay the entire thing out at that point without penalty. When the term is up you have no more commitment to them. It's the same thing as if you were going to a different lender after that 5 year term. They may try to ding you with some kind of administration fees depending on the bank. But when the term is up and you want to pay it out you should be able to without penalty.

I hope that is a serious question. Congrats on being mortgage free if that's the case!

[fotze]

You should be able to pay the entire thing out at that point without penalty. When the term is up you have no more commitment to them. It's the same thing as if you were going to a different lender after that 5 year term. They may try to ding you with some kind of administration fees depending on the bank. But when the term is up and you want to pay it out you should be able to without penalty.

I hope that is a serious question. Congrats on being mortgage free if that's the case!
Mortgage doesn't end for a while.

[Bagor]

I'm in a sorta similar situation to Fotze.

Up for renewal in just under 3 years. 5 years FR 5.15%

I just checked with my bank yesterday and my Line of Credit which I haven't dipped into is set at prime. For whatever reason I was always under the impression it was prime +1%.

So basically does it make sense for me to take money from my LOC and use it to double up on my mortgage payments? The answer seems an obvious yes but I'm scared I'm missing something.

Asked at the bank yesterday and they sorta avoided the question.

[fotze]

What is prime at?

[Bagor]

What is prime at?

I believe: 4.75%

Also, I think that if it does go up again it "usually" goes up 0.25% at a time.

Gives you a bit of time to get things in order.

[fotze]

I can only prepay 15% so the difference would be minimal. If you had an open mortgage that would be a good idea.

[Bagor]

I can only prepay 15% so the difference would be minimal. If you had an open mortgage that would be a good idea.

Yeah, I'm on a weekly accelerated with a double up option (RBC)

[Slava]

I believe: 4.75%

Also, I think that if it does go up again it "usually" goes up 0.25% at a time.

Gives you a bit of time to get things in order.

Prime is at 4.75% and there is really no "usually" as far as the rates are concerned! That being said there are a lot of indications that the prime rate will come down through then end of the year...

[Bagor]

With all due respect Slava, Prime tends to move in increments of 0.25% more often than not hence the use of the word "usually".

e.g. The last 2 changes in March and April were 0.5%. Before that, the last change >0.25% was in November 2001. Some 22 changes in the rate between then and Jan 2008. All at 0.25% increments.

http://www.fin.gov.bc.ca/PT/bcm/ref/cibcHistoricalPrime.pdf

Apologies MikeOxlong.

[Mike Oxlong]

No apologies neccesarry. Good find on that link.

This thread should be used to answer all types of mortgage and financing questions and answers.

And certainly not just by me. I can always learn a few things as well.

[loob job]

Also, i'm not 100% on this, so correct me if i'm wrong, but i don't think mortgage rates are tied to prime. So if prime goes up to 5.25 mortgage rates could stay the same or go down thus negating the interest savings by paying the mortgage with the line of credit.

[loob job]

Question. If i can get a mortgage through a mortgage broker for 5.1% and a big bank like CIBC is offering 5.5% why wouldn't i get the mortgage through a broker. Are there fees that need to be paid to the broker or are you paid by the lender that you choose to get me the 5.1% rate?

[fotze]

Question. If i can get a mortgage through a mortgage broker for 5.1% and a big bank like CIBC is offering 5.5% why wouldn't i get the mortgage through a broker. Are there fees that need to be paid to the broker or are you paid by the lender that you choose to get me the 5.1% rate?I can answer that one. You would be crazy to go with the big bank. I bet the big bank will try to tell you that 0.4% iinterest is not much. On a $225k morgage over 5 years works out to be around $4500, on a 25 year amortization its about $16000, not too mention you're payment has a bigger percentage going to principle right away.

That's like gettting one IPOD for $300 at futureshop and then at bestbuy it is $4800.

If anyone tries to convice you the rate is not that important, hang up the phone.

There should be no fees to the broker.

[loob job]

oh, i know the rate is important, i'm a cga and run amort. scheds all the time. I just wondered if there were fees that had to be paid up front to the broker.

[fotze]

oh, i know the rate is important, i'm a cga and run amort. scheds all the time. I just wondered if there were fees that had to be paid up front to the broker.
I see, alot of people do not though which is bizarre. They will shop around for cheap gasoline but for a mortgage just assume the bank they have been with for a while, will treat them right. Oh well, its only $20,000.

I have never paid a broker fee.

[Mike Oxlong]

No you generally never have to pay a broker. We are paid a finders fee from the lender that we obtain your financing through.

It's really a win win for you. Most of the time we can get you a better rate, the service is generally better, and best of all it is free.

Like Fotze said it can save you THOUSANDS over the course of your mortgage.

[Mike Oxlong]

Also, i'm not 100% on this, so correct me if i'm wrong, but i don't think mortgage rates are tied to prime. So if prime goes up to 5.25 mortgage rates could stay the same or go down thus negating the interest savings by paying the mortgage with the line of credit.

Fixed rate mortgages are not tied to Prime. Those rates are tied to Bond Yields.

However Variable rate mortgages are tied directly to Prime. For example if you had a mortgage that was at Prime -.60 (Prime is currently 4.75%) then right now the rate would be 4.15%. However if Prime drops .25% then your new rate is going to be 3.90%, conversely if Prime goes up .25% then your new rate is going to be 4.40%

Some people don't mind the fluctuation on variable rates. Other people would prefer to be locked into a rate for 3 or 5 years so they know exactly what they are going to be paying every month for the next few years.

But as for paying your mortgage with the line of credit you do have to make sure it makes sense especially if Prime does increase.

[Mike Oxlong]

I see, alot of people do not though which is bizarre. They will shop around for cheap gasoline but for a mortgage just assume the bank they have been with for a while, will treat them right. Oh well, its only $20,000.

I have never paid a broker fee.

It's amazing what some banks try to get away with. Especially around renewal time. They will send out a renewal notice to the client that has been with them for 20 years and just expect them to sign it and send it back to them. Most time the rate is WAY higher than what they could get if they walked into the bank and did a little negotiating, and if they talked to a broker they can usually even beat that rate even further.

It's your money. Silly to give it away to the bank like that. They have plenty of money already. Little bit of research save you a whole lotta dough.

[Sylvanfan]

^^^
It is pretty much criminal how poorly informed they allow people to be when purchasing a house. It's crazy how people will research a vehichle to the ends of the Earth before they make a decision. But with a mortgage...meh, it's fine!

Although, I did once deal with a mortgage broker and I don't think she knew what she was really doing. I ended up paying the penalty on my old mortgage, than got the same mortgage from the same lender (who happened to be a major bank) and didn't get credited back the payout. I figured this out afterwards and went to the bank the next time and asked for all this and to have all the fee's waived and they did it.

So really don't use any mortgage broker....Use a GOOD Mortgage broker who knows their stuff! Of which I'm sure you are.

[fotze]

^^^
It is pretty much criminal how poorly informed they allow people to be when purchasing a house. It's crazy how people will research a vehichle to the ends of the Earth before they make a decision. But with a mortgage...meh, it's fine!
They do all these means tests but the biggest one should be accepting a 2% higher mortgage rate than a golden retriever could get. They should offer 8% and if the client says "Ya, ok, sounds good" the bank should turn around and say "Uh oh, you obviously are a complete fataing idiot with your money and you are too much of a risk for this bank, denied".

[Bagor]

It's amazing what some banks try to get away with.

No kidding.

Before we got a broker it was a bit of an eye opener.

Had the 5.45% is the absolute best we can do for you talk. Replied with such and such bank are offering us 5.25 (total BS). An awkward moment. Bank person asks us to wait a minute. Goes and takes a quick dump and comes back saying that after talking with their boss they can match the other banks offer. So much for best and final offer.

My advice: Use a broker but if you're determined to do it yourself with the banks, get your BS head on and fill them with as much BS as they're filling you. Play them off against each other. NEVER believe a word they're telling you.

Don't talk to me about banks. I've got a great story on another dealing (totally off-topic) that starts with a employee screaming down the phone at me at 8am (who the hell phones at 8am?) and finishes with me standing at the phone with a dictophone 2 days later to record the BS they were feeding me. Why the dictophone? When I asked them to clarify in writing by e-mail the BS information from the phone, I got no reply. Knew that they were going to try and deny it all later which they did.

[Ardor]

PM sent

[loob job]

So if variable mortgage rates are tied to prime, if prime goes up by .25 then will the variable rate go up exactly the same?

[Mike Oxlong]

So if variable mortgage rates are tied to prime, if prime goes up by .25 then will the variable rate go up exactly the same?

Yes.

If you have a variable mortgage at prime you are currently paying 4.75% (which is too high for a variable rate). If it goes down by .25% your new interest rate will be 4.50% And vice versa if rates go up.

[Mike Oxlong]

Just an FYI for everyone. The big banks are starting to raise their long term fixed interest rates.

They predict variable rates will remain the same or fall over the next few months but they are already bumping up the fixed rates.

http://money.canoe.ca/News/Sectors/BanksFinance/2008/09/25/6878781-cp.html

One thing. The rates quoted in the article at like 7.05% for a 5 year fixed are ridiculous. You don't have to pay anywhere near that.

[Sample00]

thanks for the headsup.
any idea why the long term fixed rate increase, besides wanting to pad their margin?

[Mike Oxlong]

From the article: (They seem to be able to explain it better than I can)

"The changes suggest bond markets are worried about the future inflationary pressures from the proposed US$700 billion U.S. government bailout of Wall Street banks, said TD Bank chief economist Don Drummond.
"We always did figure that adding $700 billion to the deficit of the United States would probably cause something like a 25 basis point (quarter point) increase in the longer-term interest rates and that seems to have already happened," said Drummond.
"(The bailout) does increase the risk to bonds. In just plain good old demand and supply that means there has to be an awful lot of bond issuance and there's a limited supply of people that want to buy them so it's natural that the price goes up," he added.
The interest rates on mortgages and other short-term borrowing are set based on the price of bonds. With lower demand for bonds and fears of inflation, rates have to rise to lure investors willing to part with their money.
Other interest rates in the economy - from consumer and car loans to mortgage rates tied to the prime rate - are affected by the Bank of Canada trend-setting rate, which is expected to fall or remain stable over the next few months at least.

[MJK]

I am thinking about buying a property in the US...anything you can do for me here or do I have to go through someone in the US?

[Mike Oxlong]

Hey there,

Sorry for the really late reply on this.

Nothing I can do for you with US properties. You need to find a mortgage broker down in the US.

I am looking at buying something down there as well and I have been speaking with some US brokers already.

[Bobblehead]

If your mortgage is coming due, at what point should I be speaking to a mortgage broker to figure out who gets my future business?

[Mike Oxlong]

Well I would call my clients about 3 months in advance of the renewal date. Chances are your bank will be sending you a letter around 3 months ahead of time as well. Whatever you do don't sign the renewal letter they give you. A mortgage broker will most likely be able to get you a better deal.

Let me know if you have any questions when yours comes up for renewal. I can let you know if they are offering you a decent rate or not.

[Mike Oxlong]

Some AMAZING rates available right now.

3.75% on a 3 year fixed
4.39% on a 5 year fixed.

These are quick close specials but there are all types of good deals in the market right now......

[old-fart]

Question for you Mr. Oxlong... I'm considering converting my existing mortgage into a HELOC. Without getting into specific details lets just say I have more than enough equity in the house to make it a non-issue (currently less than half the equity in the house is in the mortgage).

So, for argument sake, a $250K house with less than $115K mortgage. Flip the mortgage into a HELOC.

My thoughts on this are as follows:
1) I would get the HELOC for the amount of the mortgage plus a little... like $120K, not for the full 75% or whatever of the house value. Close out mortgage with funds from HELOC. HELOC becomes only debt (no car loans or credit card payments, etc).
2) Have my paycheck deposited into the HELOC account.
3) Withdrawl funds from HELOC throughout the month ala a checking account. Ensure that at the end of the month the amount owing on the HELOC is less than the amount owing at the start of the previous month, and track that progress towards retirement of said HELOC.

In effect, make the HELOC my own personal "Manulife ONE" account. Why not just get a Manulife ONE you ask? They are currently at 5.1%, I can get a HELOC for prime +1% at the worst. My current mortgage is 5.15%.

Comments?

[Mike Oxlong]

That seems like a great plan. The only thing is you have to be really disciplined and make sure that you aren't spending more than is coming in.
If you make sure that HELOC balance is going down every month then you are looking good. Whatever extra you can put on your mortgage or HELOC to pay it off early is going to save you a lot of cash down the road.

[troutman]

Bring lots of cards to the CP Networking meeting.

[SportsJunky]

Question for you Mr. Oxlong... I'm considering converting my existing mortgage into a HELOC. Without getting into specific details lets just say I have more than enough equity in the house to make it a non-issue (currently less than half the equity in the house is in the mortgage).

So, for argument sake, a $250K house with less than $115K mortgage. Flip the mortgage into a HELOC.

My thoughts on this are as follows:
1) I would get the HELOC for the amount of the mortgage plus a little... like $120K, not for the full 75% or whatever of the house value. Close out mortgage with funds from HELOC. HELOC becomes only debt (no car loans or credit card payments, etc).
2) Have my paycheck deposited into the HELOC account.
3) Withdrawl funds from HELOC throughout the month ala a checking account. Ensure that at the end of the month the amount owing on the HELOC is less than the amount owing at the start of the previous month, and track that progress towards retirement of said HELOC.

In effect, make the HELOC my own personal "Manulife ONE" account. Why not just get a Manulife ONE you ask? They are currently at 5.1%, I can get a HELOC for prime +1% at the worst. My current mortgage is 5.15%.

Comments?
I'm pretty sure the Manulife One base rate is 3.75% right now.

[old-fart]

I'm pretty sure the Manulife One base rate is 3.75% right now.

Huh... you're right, but I swear I checked last week (or maybe the week before) and it was higher.

Unless I'm just losing it, which is also possible.

Still, given the fees for both setup and monthly that Manulife charges, plus considering the lack of bank machines, etc. I think I'd be better off with my existing bank and the HELOC outlined above (my own personal Manulife ONE). $150 total fees to setup (including legal, transfers, everything), no monthly fees, bank machines everywhere.

Thanks for pointing out the new rate though, I'll use that when negotiating with my bank... ;)

[SportsJunky]

Huh... you're right, but I swear I checked last week (or maybe the week before) and it was higher.

Unless I'm just losing it, which is also possible.

Still, given the fees for both setup and monthly that Manulife charges, plus considering the lack of bank machines, etc. I think I'd be better off with my existing bank and the HELOC outlined above (my own personal Manulife ONE). $150 total fees to setup (including legal, transfers, everything), no monthly fees, bank machines everywhere.

Thanks for pointing out the new rate though, I'll use that when negotiating with my bank... ;)
I'm in no way trying to sell you on Manulife One (even though it is what I use) but I just wanted to point out that they eat the legal fees - not you. They charge 14 dollars a month for everything.

You are right though, the big drawback is the bank branch/atm locations. Great Western seems to be popping up in more communities though and they are part of the growing Manulife Exchange Nnetwork.

Good luck.

[Slava]

Huh... you're right, but I swear I checked last week (or maybe the week before) and it was higher.

Unless I'm just losing it, which is also possible.

Still, given the fees for both setup and monthly that Manulife charges, plus considering the lack of bank machines, etc. I think I'd be better off with my existing bank and the HELOC outlined above (my own personal Manulife ONE). $150 total fees to setup (including legal, transfers, everything), no monthly fees, bank machines everywhere.

Thanks for pointing out the new rate though, I'll use that when negotiating with my bank... ;)

I just wanted to point out that there are no set-up fees for the Manulife One account...not that this addresses all of your concerns though!

[Boblobla]

I sent you a PM

[Wookie]

K, here's something I've been contemplating.

I thought about paying it out to try to get a better rate, but it doesn't seem worth it since I've got... maybe 3.5 approx years left with a rate of 5.82%.

However, I can pay down my mortgage by $50,000 each year without penalty. So, it suddenly occurred to me, "could I get $50,000 3/4 year mortgage to pay down a chunk of my current mortgage? Then in 2009 get another $50,000 and do it again with a 2 or 3 year, then again a year later on a one year term? I could (I think average out my rates to some substantially low rates.

Just occurred to me while I was swimming laps and my mind was wandering.

[Deegee]

K, here's something I've been contemplating.

I thought about paying it out to try to get a better rate, but it doesn't seem worth it since I've got... maybe 3.5 approx years left with a rate of 5.82%.

However, I can pay down my mortgage by $50,000 each year without penalty. So, it suddenly occurred to me, "could I get $50,000 3/4 year mortgage to pay down a chunk of my current mortgage? Then in 2009 get another $50,000 and do it again with a 2 or 3 year, then again a year later on a one year term? I could (I think average out my rates to some substantially low rates.

Just occurred to me while I was swimming laps and my mind was wandering.

Yup, you should be able to do that.

However, I would think it'd need to be with the lender you have your first mortgage with or you would be charged 2nd Mortgage residential lending rates vs 1st Mortgage residential lending rates.

You would also most likely incur legal fees for every mortgage you register on title.

[3thirty]

pm'd

[albertGQ]

If I'm refinancing to buy out my buddy, would using a broker benefit me? How does the broker get paid? Or should I just go to the bank and do it on my own?

[Mike Oxlong]

You don't pay brokers for their services. We get paid by the bank that we place your mortgage with.

I am slightly biased but there is a huge benefit to using a broker.

When you go to the bank you get their mortgages, with their options, and their rates, that's all. With a broker we take your application and shop it around to find you the best rates, terms, and conditions to meet your needs. Saves you the legwork of shopping around and we can generally get you the best rates. Lots of the lenders we use aren't generally accesible unless you use a broker anyways.

I got your pm and would love to help you out.

[Sample00]

You don't pay brokers for their services. We get paid by the bank that we place your mortgage with.

I am slightly biased but there is a huge benefit to using a broker.

When you go to the bank you get their mortgages, with their options, and their rates, that's all. With a broker we take your application and shop it around to find you the best rates, terms, and conditions to meet your needs. Saves you the legwork of shopping around and we can generally get you the best rates. Lots of the lenders we use aren't generally accesible unless you use a broker anyways.

I got your pm and would love to help you out.

Brokers are the only way to go when getting a mortgage!!!

[Boblobla]

Mike Oxlong has been AWESOME helping my Fiancee and I buy our first home. I can't imagine having to get all the crap the banks are looking for myself. Especially with the oh so convenient times that banks are open...

[Deegee]

Just want to add that not all banks are horrible. I know myself that I work very hard for my clients to find a good deal for them and I often tell them that if "banking hours" do not work well for them that I will make myself available for them at an hour that works for them and I am often very mobile, often leaving the Branch.

If your Mortgage needs are not specifically a Residential 1st Mortgage then sometimes a Bank isn't all that bad to go through.

[Mike Oxlong]

I have a special rate of 3.59% on a 5 year fixed available right now.
If anyone is thinking of buying, renewing or refinancing soon let me know, I would be happy to help out.

3.59% special is done.....
3.69% on a 5 year fixed is available though

[Fozzie_DeBear]

Do banks pay Mortgage Brokers different commissions? Or is it standardized regardless of the bank?

[Sample00]

I have a special rate of 3.59% on a 5 year fixed available right now.
If anyone is thinking of buying, renewing or refinancing soon let me know, I would be happy to help out.

how looooooooowwww can you gooooooooooooo!
thats amazing.
I wonder if they will continue to drop a bit yet.

[Mike Oxlong]

Do banks pay Mortgage Brokers different commissions? Or is it standardized regardless of the bank?

For the most part we are compensated the same from all banks based on the term of the mortgage. Sometimes there are some varying rates but nothing too drastic.

[Mike Oxlong]

how looooooooowwww can you gooooooooooooo!
thats amazing.
I wonder if they will continue to drop a bit yet.

It's hard to say. When they got to 4% I thought that was really low but they just kept dropping. I don't think they are going to climb for a while yet which is good news. I think we have a year or so of rates in this range.

At 3.59% it's a steal for 5 years.

[albertGQ]

CIBC is offering a 4-year term at 3.44%

[Draug]

I will add that Mike Oxlong was awesome through my whole mortgage process. Suffice to say there were 'obstacles' we had to overcome, and he worked very diligently throughout the whole process.

I've had probably 9 mortgages over the years; most with brokers and a few with banks. By far, Mike Oxlong worked the hardest of any previous brokers and really came through with flying colors.

I feel comfortable giving Mike Oxlong a nice, postive, and glowing recommendation!

[loob job]

I am in Ontario and am looking to get my first mortgage, think i am going to go with the 5% back mortgage in order to get some cash in my wallet to furnish my first house. $300,000 mortgage gets me $15,000 cash in my account. Great for first time home buyer and the rate isn't awful at 4.75%, considering a lot of people locked in last year at over 5.7% and got no money back.

[Crazy Flamer]

PM Sent.

[Table 5]

Jami---err, "Mike" was great at helping me with my mortgage. Patient and willing to answer all my dumb questions, and greatly helping to make a somewhat complicated cross-border purchase much easier.

I honestly can't compare him to other brokers because I've never used one before, but short of making the bank give me money for free, I'm not sure what more i could have asked for from a broker.

[Mike Oxlong]

Just a quick rate update - that 3.59% special isn't available anymore
3.69% which is still phenominal is the best 5 year rate right now.

[1_Flames_Fan]

Just a quick rate update - that 3.59% special isn't available anymore
3.69% which is still phenominal is the best 5 year rate right now.

Have you ever done a residential mortgage on a property that is zoned as light industrial? It is a legal dwelling that was built in about 1960 I believe but recently the zoning for the property was switched to light industrial. We haven't had any luck with getting a mortgage because of this. Its not a credit issue or anything like that, its a zoning issue. Any thoughts?

[Deegee]

Could you link the MLS listing 1_Flames_Fan? I'm curious.

[1_Flames_Fan]

Could you link the MLS listing 1_Flames_Fan? I'm curious.

Its my sister and brother-in-laws place and its going to be a private sale so they are not listing it. Its about an 1100 sqft house on .73 acres of land. Getting a mortgage for it because of the zoning has been a real pain in the ass.

[Mike Oxlong]

Why was it switched to industrial? Are there businesses on the land now?

Being a private sale is another tricky aspect. A lot of lenders don't like those.

[I-Hate-Hulse]

Off hand, do you know what First National's buyout penalty is? I think I have 2 years left on my 5 year term, but considering I'm at 5.25%...... I vaguely remember a rather crushing penalty.

[albertGQ]

Just heard through the grapevine that ATB will be having a June promotion where their 5-year fixed rate (extreme discount) will be 3.50%. Not sure if this is true or not, but it was a branch manager that advised me of this.

So whoever is getting a mortgage may want to check this out Monday

[fotze]

Off hand, do you know what First National's buyout penalty is? I think I have 2 years left on my 5 year term, but considering I'm at 5.25%...... I vaguely remember a rather crushing penalty.It is the rate differential. I ill try to remember the formula....

Their 2 year rate is 3.05. So the difference is 2.20%.

So the penalty is ...the balance remaining X .022 X 2 years=0.044XBalance. So if your balance is $150k, the penalty is $6600.

Its on their site.
http://www.firstnational.ca/default.aspx?menuId=7&catId=1&pageId=8

[I-Hate-Hulse]

Thanks Fotze... that's pretty punishing. Since there's a chance I move next year... probably doesn't make sense to re-fi...

[fotze]

Thanks Fotze... that's pretty punishing. Since there's a chance I move next year... probably doesn't make sense to re-fi...To reduce the penalty you would want to do the maximum prepayment to reduce the balance remaining prior to moving.

I actually phoned first national and they will not waive the penalty at any point even if you want to re-up with them with 3 months remaining in the term.

[albertGQ]

CIBC 5-year fixed closed rate just went up from 3.75% to 3.95%

[Mike Oxlong]

Fixed rates are going up across the board. If you are thinking about buying or refinancing get pre approved and get a rate hold NOW. If you wait you are going to further miss out on rates.

If you are thinking about refinancing to get out of your current mortgage this could be great timing for you. Get a pre approval and rate hold put in place now so you have a guaranteed rate. When banks increase rates further your IRD penalty will be less than it is now, which will make even more financial sense for you to get out of your current mortgage.

[albertGQ]

Fixed rates are going up across the board. If you are thinking about buying or refinancing get pre approved and get a rate hold NOW. If you wait you are going to further miss out on rates.

If you are thinking about refinancing to get out of your current mortgage this could be great timing for you. Get a pre approval and rate hold put in place now so you have a guaranteed rate. When banks increase rates further your IRD penalty will be less than it is now, which will make even more financial sense for you to get out of your current mortgage.

Just wanted to confirm that ATB does in fact have a 5-year fixed rate at 3.50%. All bank rates are going up but ATB is having a June promotion for this ridiculously low rate.

Take advantage of this if you can

[Boblobla]

I would like to give Jamie a huge thanks for all his help securing my first mortgage. He answered all of my questions promptly, even the really really dumb ones. I have no idea how I would have done all this without his help considering all the different documentation the banks wanted from me.

http://www.nepress.co.uk/sgjj/www2/thanksabunch/logo.jpg

[Deegee]

ATB is no longer offering that rate.

[oxygen]

Does anyone know of any financial institutions that will lend on appraised value instead of purchase price?

[Deegee]

When you initially purchase the property, most places will lend on lower of the purchase price OR appraisal value.

I assume you are talking about the initial purchase?

[oxygen]

Ya, I'm talking about the initial purchase. There must be some second tier lenders that would lend on the appraised value even if it's greater than purchase price.

[Mike Oxlong]

I would like to give Jamie a huge thanks for all his help securing my first mortgage. He answered all of my questions promptly, even the really really dumb ones. I have no idea how I would have done all this without his help considering all the different documentation the banks wanted from me.

http://www.nepress.co.uk/sgjj/www2/thanksabunch/logo.jpg

Flowers....awww you shouldn't have, and roses are my faves!

This should prevent any "What should I get my mortgage broker?" threads at least.

It was a pleasure working with you and Jenn. Glad to hear you guys like the house!

Check out the Kilt and Caber down in McKenzie Towne. Not too far form you now, it's a great place.......we'll have to go for a beer.

[Mike Oxlong]

Ya, I'm talking about the initial purchase. There must be some second tier lenders that would lend on the appraised value even if it's greater than purchase price.
'

As far as I know they lend on the lower of the 2. I'll look into it a bit more and if I find out differently I will let you know.

[Deegee]

Never mind.

[Mike Oxlong]

Just a quick update on where rates are going. After that big jump about a month ago they have started to fall back down a bit.

5 year fixed are in the 4.29% range now which are still fantastic.
Some lenders are also dropping their variable a bit as well.

Feel free to contact me if anyone has questions on anything.

[albertGQ]

VIBC dropped their VRM closed to P+0.4% and their VRM open to P+0.8%

[Robbob]

I just wanted to give massive kudos to Jamie (Mike Oxlong). He helped me and my wife secure a mortgage to purchase our house. I can also vouch that he did a phenomenal job helping us out and answered all the questions we had (funny, I had stupid questions too!). Honestly he went above and beyond my expectations (he emailed me back via blackberry from the hospital after the birth of his daughter!).

Could not have been any happier with the process. Extemely happy with coming to CP oracle and finding Jamie.

Thanks again Jamie!

[GoinAllTheWay]

I just wanted to give massive kudos to Jamie (Mike Oxlong). He helped me and my wife secure a mortgage to purchase our house. I can also vouch that he did a phenomenal job helping us out and answered all the questions we had (funny, I had stupid questions too!). Honestly he went above and beyond my expectations (he emailed me back via blackberry from the hospital after the birth of his daughter!).

Could not have been any happier with the process. Extemely happy with coming to CP oracle and finding Jamie.

Thanks again Jamie!

They had a son :ph34r:

[Mike Oxlong]

Rates have dropped again.
5 year fixed now at 3.95%
5 year variable at Prime plus .05% (2.30% currently)

These are great rates with a good lender. They aren't a quick close special or some "value" mortgage that doesn't allow any prepayment privledges like a lot of the other low rates are.

This lender actually has the best pre payment privledges in the business.

I can get a 120 day rate hold on these as well. Let me know if you are buying or renewing soon.

[Mike Oxlong]

Just a quick heads up for anyone interested. A friend of mine at RBC told me they are raising interest rates by .3% on Tuesday. Generally they lead the way and the other lenders follow shortly after.

I can get a 120 rate hold on today's rates. If anyone is thinking about buying or has their mortgage coming up for renewal soon, let me know and we can get today's lower rates locked in in case they do make a big jump next week.

[The Special One]

These interest rates are too low. It makes me very wary about buying a house in today's market. They are intentionally keeping rates low in order to stop a complete collapse of the real estate market.

[fotze]

If you are renewing are mortgage companies uninterested if its like a 30-50k mortgage? Is there a lower limit or anything?

[albertGQ]

CIBC's VRM closed is now P+0% FYI

[Burninator]

I just want to thank Jamie for helping get my first mortgage to help me buy a condo a couple weeks ago. Jamie was very helpful and answered all my questions and helped me every step of the way. I am very glad I decided to get the help of a mortgage broker it was definitely something I recommend everyone do. And I wouldn't hesitate to recommend them to Jamie as well.

Thanks Jamie

[Kolbe31]

My girlfriend and I recently bought a house, and we're currently working with our mortgage broker to get the best rate. CIBC seems to be the front runner, however there's a company called Concentra Financial that we've also talked about. Does anyone know anything about Concentra? I've never actually heard of them. Apparently they're a credit union company, although I'm not sure what the difference is between that and other financial institutions. My gut tells me that I should go with a bank, like CIBC or RBC. Does it matter?

[Slava]

My girlfriend and I recently bought a house, and we're currently working with our mortgage broker to get the best rate. CIBC seems to be the front runner, however there's a company called Concentra Financial that we've also talked about. Does anyone know anything about Concentra? I've never actually heard of them. Apparently they're a credit union company, although I'm not sure what the difference is between that and other financial institutions. My gut tells me that I should go with a bank, like CIBC or RBC. Does it matter?

I know a guy at concentra, but he only does commercial lending. Probably not a lot of help here, but basically its just a credit union. No major plus/minus as compared to the big banks that I know of.

[Mike Oxlong]

My girlfriend and I recently bought a house, and we're currently working with our mortgage broker to get the best rate. CIBC seems to be the front runner, however there's a company called Concentra Financial that we've also talked about. Does anyone know anything about Concentra? I've never actually heard of them. Apparently they're a credit union company, although I'm not sure what the difference is between that and other financial institutions. My gut tells me that I should go with a bank, like CIBC or RBC. Does it matter?

I am familiar with Concentra. They are a very solid lender, I would have no problem obtaining a mortgage through them or putting any of my clients into a mortgage through them either.

A lot of the smaller lenders often beat the rates the big banks can get you. It definitely pays to shop around or have a broker shop around for you.

[Mike Oxlong]

Fixed rates across the board have dropped again.
3.99% for a 5 year fixed now. This is with one of the best lenders out there as well.
I can get a 120 dat rate hold on that if you need.

All rates are available at www.jamiecoulter.ca (http://www.jamiecoulter.ca)

[fotze]

Fixed rates across the board have dropped again.
3.99% for a 5 year fixed now. This is with one of the best lenders out there as well.
I can get a 120 dat rate hold on that if you need.

All rates are available at www.jamiecoulter.ca (http://www.jamiecoulter.ca)Any Open Fixed?

[Mike Oxlong]

Any Open Fixed?
4.99% on an open fixed.

I'll check for anything better.

[Mike Oxlong]

Looks like fixed rates could be on the rise again. Bond yields have increased and some lenders are starting to increase their rates.

Right now I can still get 3.99% on a 5 year fixed, and even lower on 1-4 year rates. As mentioned earlier I can get you a 120 day rate hold on this rate as well.

If you are thinking about buying, refinancing, or your mortgage is coming up for renewal let me know and we can get take advantage of these rates before they increase.

[fotze]

Is variable open still at prime +0.8?

[Mike Oxlong]

Is variable open still at prime +0.8?

Yep. That's the best I can find anywhere right now. Some are even higher than that.

[Mike Oxlong]

Quick update on rates. I am getting more and more emails indicating rates are on their way up.

If you are even considering buying, refinancing, or if your mortgage is coming up for renewal let me know and I can get a rate hold put in for you. It takes me all of 2 minutes, I just need your name, email, phone number and approx mortgage amount. We don't need the full application done right now.
I can get you 3.99% on a 5 year fixed and hold that rate for the next 120 days.

There is no commitment to this at all. I am happy to get that rate held for you just in case you need it. It's always better to have options.

PM me or email me at jamiecoulter@shaw.ca

[fotze]

What rates can you hold on other deals??? 1 year, 2 year etc?

[Mike Oxlong]

What rates can you hold on other deals??? 1 year, 2 year etc?
Here is a breakdown on most terms:

1 Year Fixed2.65% 2 Year Fixed3.15% 3 Year Fixed3.49% 4 Year Fixed3.99% 5 Year Fixed3.99% 7 Year Fixed5.25% 10 Year Fixed5.35%

[fundmark19]

Mike,

I have been hearing about a 3.85 5 yr fixed rate floating around. Are you able to get this rate to?


( I don't want to say lender or who I got info from to impede on your thread)

[Mike Oxlong]

Mike,

I have been hearing about a 3.85 5 yr fixed rate floating around. Are you able to get this rate to?


( I don't want to say lender or who I got info from to impede on your thread)

I am able to get that rate as well. You have to be a bit careful with some REALLY low rates like that though. This is what is called a no frills mortgage (if it is in fact the one I am thinking of). It doesn't give you any flexibility at all as far as lump sum payments go to pay the mortgage down faster, or increasing your payments at all. It is also very restrictive when it come to porting the mortgage to another property should you ever need to. It is very strict and not flexible which you have to be careful of.

For some people it may be fine and meet their needs, however it is pretty restrictive and I make sure to let my clients now that going in. In my opinion for a few extra points you can get a far more flexible option.

As far as rates going up as I was warning about in earlier posts, it hasn't happened yet. The employment report that was released on Friday showed unexpectedly low job growth which has stalled banks on raising rates for now. The increases are coming for sure, just don't know exactly when though.

EDIT: I just had a rate notice sent to me that 3.89% is available and it is NOT a no frills mortgage. Lots of flexibilty and different options.

[Mike Oxlong]

Rates have been dropping this week. After everyone was expecting them to climb they have actually fallen even further.

5 year fixed - 3.79%
5 year fixed on a quick close special - 3.69% (Must close by Mar 26th)

Let me know if you have questions.

[go iggy]

Whats the best closed variable rate that you can get?

i have prime +.8 and another prime -.5

[Mike Oxlong]

Whats the best closed variable rate that you can get?

i have prime +.8 and another prime -.5

Best variables available right now are
Prime minus .3% on a 3 year and Prime minus .2% on a 5 year.

[Ace]

How far in advance of your mortgage expiring can you lock in a rate?

How much should the rate differential be before looking into discharging your current mortgage early? (i.e. if I'm currently on a fixed 5.1% may it be worth it to pay the penalty)

[fotze]

How far in advance of your mortgage expiring can you lock in a rate?

How much should the rate differential be before looking into discharging your current mortgage early? (i.e. if I'm currently on a fixed 5.1% may it be worth it to pay the penalty)
The formula is mortgage balance remaining multiplied by nu,mber of years remaining times the difference between your rate and the posted rate for a term that you have remaining.

i.e. $175k remains. 8 months to go. Your rate is 5.1% and the posted 1 year rate is 3.15%. Penalty is $175k X (8/12) X (.051-.0315) = $2,275.

there is also usually a discharge fee. Mine is $320. Plus if you move mortgage companies you need to re-lawyer up for $500.

[Mike Oxlong]

How far in advance of your mortgage expiring can you lock in a rate?

How much should the rate differential be before looking into discharging your current mortgage early? (i.e. if I'm currently on a fixed 5.1% may it be worth it to pay the penalty)

Fotze is right on everything except the lawyers fees. If you are just switching your mortgage from one lender to another and not changing anything then it is considered a "switch". In that case rather than going to a lawyer a company called FNF can handle it and many of the lenders will cover their fee so it doesn't cost you anything.

His explanation of the payout penalty is correct unless a 3 month interest penalty is greater than the "IRD" calculation.

I am able to get you a rate hold for 120 days. As soon as you are 120 days from your renewal I would reccomend putting a rate hold in place, just in case rates do go up between now and then.

[fotze]

Mr Longcock, I am moving to the RBC prime + 0.7 that you so generously suggested without getting a commision. Also getting a line of credit there, but the rate is Prime + 0.5. Can I just pay off the mortgage then just pay off the LOC at the lower rate? Do they allow that?

[fundmark19]

Ya fotze they don't care how you pay off the mtg. I just got prime plus .05 as a retention offer on an open variable Mortgage. So you may be able to get that if you tell your bank you are moving

[fotze]

Ya fotze they don't care how you pay off the mtg. I just got prime plus .05 as a retention offer on an open variable Mortgage. So you may be able to get that if you tell your bank you are movingHow the FATA did you get that crazy rate? What bank? Are you sure its open. Best available anywhere is prime plus 0.7. You a multi millionaire?

[fundmark19]

I am not a millionaire by any means. I was with scotia had Prime + .8 then found out BMO offered Prime + .7 like you did and was going to switch. Scotia called me said they would offer + .5 I said I wanted to refinance by like 30 grand and if they could get me some more info. Told BMO this and they matched the + .5 so after not hearing from Scotia for 3 days I told them to send the payout request.

I am 22 I do have 3 properties though. This Property was my main residence half of a duplex(don't own both sides) for 330 000 in New Brighton so by no means is it a very lucrative million dollar mtg or anything like that


*again this was a retention offer* So if your mortgage is up for renewal or you are looking to switch you may be able to swing it. Going through a mortgage specialist (the BMO side I dealt with) it needs special pricing authorization or if you are going through the bank (scotiabank side) Needed branch manager authorization*

[fotze]

BMo wouldn't even port my mortgage when I changed houses 3 years ago, they refused to budge on making me pay the penalty even if I stayed with them. My mortgage company didn;t seem to say anything when I enquired months ago. I'll check though thanks.

[speede5]

OK, so how does this scenario look. Currently I am in year 2 of a 5 year 141,000 mortgage (Concentra). Intrest rate is 6.64. I asked about refi and they have come back with 5 yrs @ 5.38 with a 115$ admin fee. Balance owed is 137,800. If I pay a penalty ($6500) they will open it up and I can go for current rates with them. Penalty to go elswhere is $9400. Penalty would be out of pocket and I don't have that so does this sound like an ok deal? I wouldn't mind the lower rate as our payments are a bit high and that would give us some breathing room, or we would be able to make the odd double which is always good.

[fotze]

If you go to the variable 1.95%, you pay back the $9400 penalty at about the 17th month, so a year and a half (assuming the rate stays the same). The payment becomes $580 per month down from $964 currently. The principle paid off with each payment becomes $357 up from $209 currently. So at the new rate 61% of it is principle versus 22% currently.

To just refinance at 5.38 your payment becomes ~$836 per month.

[speede5]

I guess the big problem is the buyout. It is a lot out of pocket, and should the rate jump a couple percent I am in the same boat in a year. I really like the smaller payments, even though we are surviving with the current ($417 Bi W Acc. Would drop to $368 with 5.38.)

Any ideas on how to buy it out when I am strapped? Are any mortgage companies offering incentives to move?

If I went variable at what point do the cost negate the gain? Say the variable rate climbs to 4 or 5 %. Is that a fair assumption given the indications they are going to be tightening the mortgage rules in the near future?

[fotze]

I guess the big problem is the buyout. It is a lot out of pocket, and should the rate jump a couple percent I am in the same boat in a year. I really like the smaller payments, even though we are surviving with the current ($417 Bi W Acc. Would drop to $368 with 5.38.)

Any ideas on how to buy it out when I am strapped? Are any mortgage companies offering incentives to move?

If I went variable at what point do the cost negate the gain? Say the variable rate climbs to 4 or 5 %. Is that a fair assumption given the indications they are going to be tightening the mortgage rules in the near future?
I thought the penalty would just lump onto the mortgage if you move to someone else. Could also lock into the 3.15-3.5 fixed rate mortgages that they are offering these days.

I don't think its easy to get a company to foot the penalty though, haven't been able to find that.

Also may be smart to do the maximum prepayment if you are going to move to lower the penalty. Use a line of credit.

[speede5]

Staying with Concentra the penalty is lower but they aren't offering to lump it in. The original mortgage was $141K so lumping in at this point means I would owe $143K. I think if I pay the $6500 penalty I can go to variable with Concentra. That would reduce the break even from 17 months to 13 or so. Actually doesn't sound to bad.

Since the Mortgage was insured through Concentra I am under the impression moving it has complications.

[Mike Oxlong]

I guess the big problem is the buyout. It is a lot out of pocket, and should the rate jump a couple percent I am in the same boat in a year. I really like the smaller payments, even though we are surviving with the current ($417 Bi W Acc. Would drop to $368 with 5.38.)

Any ideas on how to buy it out when I am strapped? Are any mortgage companies offering incentives to move?

If I went variable at what point do the cost negate the gain? Say the variable rate climbs to 4 or 5 %. Is that a fair assumption given the indications they are going to be tightening the mortgage rules in the near future?

If you want to lump the payout penalty on to the new mortgage you simply do a refinance. You can add that payout penalty on to the new mortgage you are qualifying for thus not having to pay anything out of pocket at all.

I wouldn't recomend going with a variable rate however. Those rates are set to start rising in June and we don't know how fast or how high they are going to climb. When you can lock into a 5 year rate for less than 4% right now then you know exactly what your payments are going to be for the next 5 years.

PM me and we can go over your situation ion a bit more detail if you want.

Even if it was insured with Concentra it can still be moved. It was just that Concentra got the insurance through CMHC but that can be transferred to the new lender.

[Ace]

Mike can we get an update on what the lowest 5 year fixed mortgage is at right now?

[Mike Oxlong]

Mike can we get an update on what the lowest 5 year fixed mortgage is at right now?

Yes for sure...

3.69% if it closes by April 26th
3.79% I can get a 120 day rate hold on.

[Mike Oxlong]

Bond yields increased today giving banks a spread of about 1.11. Generally they need to be between 1.35 and 1.55 to keep 5 year fixed rates where they are today.

Good chance fixed rates could be climbing next week.

Even if you are considering buying or your mortgage is up for renewal within the next 120 days let me know. I can get a rate hold put in place for 120 days for you in case they climb. Might as well take advantage of today's low rates if you can.

[Mike Oxlong]

This week's rate update:
3.69% on a 5 year fixed with a 120 day rate hold.

Honestly these won't last forever. I know I keep saying rates are going to climb and they don't. One of these days they have to....

Take advantage of them while you can.

[Mike Oxlong]

Ok that day has finally come. Last week fixed rates took a fairly major jump. I knew it was just a matter of time, and that time has arrived.

Best 5 year fixed rate out there right now is 4.29%. Yes rates have climbed but keep in mind 4.29% for a 5 years fixed is still an amazing rate.

If you are looking for a variable I have a lender that is offering Prime (2.25% currently) less .5% which works out to 1.75% at this time.

[1stLand]

where do observers see prime at in a year from now?

[fundmark19]

1 percent higher then it currently is

[Mike Oxlong]

where do observers see prime at in a year from now?

It's tough to say, it really depends a lot on inflation and if the Bank of Canada feels they need to raise interest rates to control it.

I would say an increase of 1% minimum but I would be surprised if it was more than a 2% increase over the next year.

[Mike Oxlong]

Here's an article that speculates when the Bank of Canada is going toi raise rates and by how much:
http://network.nationalpost.com/NP/blogs/tradingdesk/archive/2010/04/12/when-will-the-bank-of-canada-raise-interest-rates-and-by-how-much.aspx

[Mike Oxlong]

Rates look like they are going to jump another .25% tomorrow. Royal Bank has already announced the hike and other banks are sure to follow.

That's twice in about 2 weeks.....

[1stLand]

I locked in at 3.5% on my mortgage last July.
Before that I was .85 below Prime, so I was below 2%.
But I considered the long term benefits of that attractive 3.5% rate.

Those higher 5 year fixed term rates are not so nice for first time home buyers

[fundmark19]

I decided to go with fixed variable with increased payment so I can pay down some principle that way if I get stuck for some reason it will give me some leverage to have options to refiance or skip a payment

[Hesla]

I have a Prime - 0.75% Mortgage right now. I have the opportunity to fix this at 4% . Should I fix now ? or should i wait it out ?

Basically the rate would need to jump 2.5% and maintain that level over the 5 year term for it to be worthwhile .

Thoughts ?

[Mike Oxlong]

I have a Prime - 0.75% Mortgage right now. I have the opportunity to fix this at 4% . Should I fix now ? or should i wait it out ?

Basically the rate would need to jump 2.5% and maintain that level over the 5 year term for it to be worthwhile .

Thoughts ?

(Just copy and pasted this from the other thread you started)

It really comes down to what you are most comfortable with.
I understand you don't want you payments to increase by 35% overnight, however if you think inflation is going to cause rates to rise enough that you are paying more than 4% down the road it is something you are going to have to face eventually.

If it were me I would stay in a variable. Prime less .75% is a fantastic rate, better than anything available on the market today. The reason you get into a variable is to take advantage of rates when they drop. Right now they are at rock bottom and you are in a great situation. Yes they are going to climb and will likely start in a couple of months - likely June or July. However it isn't like they are going to jump 2% overnight.

With your situation you have a cushion of 2.5% before you are effectively paying 4% on your variable. I think the increase of 2.75% (from your article) is maybe a bit on the high side but it's tough to tell. I've seen other reports saying rates aren't going to rise as quickly as people think so it's a tough guessing game.

If you are finacially stable and can ride the fluctuations in the market then I would just hold on to the variable for now and keep milking that great rate as long as you can.

If you feel like an increase that effectively puts you over 4% is going to cause you trouble financially then maybe you should be locking in.

I really don't see rates climbing to the 7-10% range. Not anytime soon for sure, that is a MASSIVE jump. Even though we are living in some crazy economic times that just seems like too much of an increase. It would really cause a LOT of issues in the housing market and I thik the Bank of Canada is smart enough to avoid a problem like that.

I know this didn't really answer your question with a solid answer. It really is your choice and what you are comfortable with. If it was me I would stick with the variable and ride it out as long as I could (I would also take the savings every month and put it down on the principal as well). Since this is a rental property you may want some cost certainty as well which is another argument for the fixed.

I am starting to discuss the option of variable rates again with clients. Now that rates are at Prime -.5% variable rates are becoming an attractive option again. Within the next week or so most banks 5 year fixed will be in the 4.69% range. When 5 year fixed were 3.69%ish and the variable were at Prime or even Prime plus it was a no brainer to lock in to a fixed. With the recent rate increase on fixed and the fact you can get Prime less .5% makes variable a good option again. You effectively have a cushion of about 3% that rates need to climb until you are at today's fixed rates. (I know this is a bit different than your situation but just throwing it out there)

[dubc80]

Just wanted to bump this thread.

Fiancee and I are still shopping around at houses and aren't sure whether or not we will pull the trigger on buying a place, and/or doing the financing through Mike, but I wanted to give him a shout-out.

He's been great to work with and has been very quick to answer my questions. A very valuable resource to the CP community!

[Mike Oxlong]

Fixed rates moving on up again. RBC raised their rates by .15% yesterday and all the other lenders are following suit in the next couple of days.

In the last month 5 year fixed rates have basically increased by a full percentage.

[Mike Oxlong]

I haven't updated in a while so I thought I would just give everyone a quick idea of what is happening in the mortgage market.

The Bank of Canada increased the key overnight rate by .25% this week. What that means is all the lenders have increased prime from 2.25% to 2.5%. So variable rates are going to be just a bit more expensive.

On the fixed rate side of things after the big jumps rates took over the last 6 weeks they have dropped down a bit again. You can now find a 5 year rate for 4.49%.

Any questions please feel free to ask.

[kipperfan]

Just wanted to jump in to add that "Mike" is a great guy to deal with and thanks in part to his hard work I am moving into my first home in a few weeks!

I would highly recommend him to anyone with mortage needs.

[Deegee]

On a 5 year product the place I work at (a Credit Union) is currently at 4.45% with additional interest rebates on top of the fantastic rate. Generous 20% prepayment options on top of that.

Historically interest rebates have been 2% - 4% of interest paid, so that would work out to an effective rate of 4.361% to 4.272%.

[Mike Oxlong]

On a 5 year product the place I work at (a Credit Union) is currently at 4.45% with additional interest rebates on top of the fantastic rate. Generous 20% prepayment options on top of that.

Historically interest rebates have been 2% - 4% of interest paid, so that would work out to an effective rate of 4.361% to 4.272%.

Yes rates are dropping again. I can get you a 5 year fixed at 4.29% now. It allows 20% prepayment options as well. Really good product at a great rate.

[Frank MetaMusil]

Yes rates are dropping again. I can get you a 5 year fixed at 4.29% now. It allows 20% prepayment options as well. Really good product at a great rate.

What can you get a 3 year fixed for Mike?

[Mike Oxlong]

What can you get a 3 year fixed for Mike?

3.75% seems to be the best rate available on a 3 year right now. There are a couple lenders offering it.

[Mike Oxlong]

Just wanted to let everyone know I have made a move over to Dominion Lending Centres. They are the biggest brokerage in Canada and it gives me even more lender options to provide to my clients. Also being the biggest broker means we sometimes have rates available to us that nobody else does.

We also have a leasing division so if anyone is ever looking to lease any type of equipment, hardware etc...let me know, it's just another service I can help you out with.

All my contact info remains the same. Either PM me here with any questions or feel free to contact me by email or phone.

403-835-1535
jamiecoulter@shaw.ca
www.jamiecoulter.ca (http://www.jamiecoulter.ca)

[Mike Oxlong]

Here's a quick update on rates for this week. I'll try to update these every week or two so everyone is in the know with what is happening.

5 year - 4.24% quick close
4.29% standard

4 year - 4.19%

3 year - 3.75%

2 year - 3.20%

1 year - 2.64%

5 year Variable - Prime less .5%

These rates are as of July 6th and are subject to change without notice.

Still some great rates available. Let me know if anyone has questions.

[jeremywilhelm]

My mortgage broker just got me 3.08% on a three year from RBC.

[Mike Oxlong]

Big Rate drop this week.
5 year fixed 4.19%
4 year fixed 3.99%

[Mike Oxlong]

While Variable rates climb slightly Fixed rates continue to fall.

3.99% for a 5 year fixed - this is a quick close special, they can only hold the rate for 45 days. This is only for owner occupied homes.

Lots of great deals on fixed rates right now though.

The gap between variable rates and fixed rates is shrinking. With variable on the rise perhaps fixed rates are the way to go right now?

[Bend it like Bourgeois]

Whats the best deal on a heloc these days?

[Mike Oxlong]

Whats the best deal on a heloc these days?

Fixed rate about 4.29%
Variable Prime plus .6% - .9%

One lender is at .6% most are .9% or higher

[Hesla]

I am definitely happy that i remained on a Variable rate for my Rental property. As for our home, we fixed at 3.85% in June, and I still think that was a great decision.

Any more thoughts on where Prime is going to go ?

[Mike Oxlong]

Fixed rates dropping again.
3.89% on a 5 year fixed now on a quick close special!

As far as where Prime goes I think it is just going to continue to slowly climb with just about every Bank of Canada announcement. There are 8 announcements per year and I am guessing they will likely increase by .25% just about every time. (As long as we seem to be on the road to recovery and nothing too drastic happens with the economy) That means it could potentially increase by 2% over the next year. Perhaps an increase every announcement might be a bit aggresive. Maybe an increase of 1.5% or so over the next year?

It is tough to say, it's a guessing game depending on how the economy is performing. It will be going up for sure though, how much is the question.

[onetwo_threefour]

Does 3.89 apply on refi or new purchases only?

[Mike Oxlong]

Does 3.89 apply on refi or new purchases only?

Purchases and refinances. It is a quick close though, has to close by September 30th.

[Mike Oxlong]

3.79% on a 5 year fixed now.
120 day rate hold

If you are buying or renewing anytime soon let me know. Let's get that rate locked in for you.

[Mike Oxlong]

3.69% on a 5 year fixed.
Quick close special. Has to close within 45 days.

[Art Vandelay]

Does anyone or has anyone ever agreed to pay your penalty for breaking your mortgage early if you switched to them?

I have 3 yrs left on my term and the penalty to break is $16K, just wondering if any company is willing to eat that for me to switch to them?

[Mike Oxlong]

Does anyone or has anyone ever agreed to pay your penalty for breaking your mortgage early if you switched to them?

I have 3 yrs left on my term and the penalty to break is $16K, just wondering if any company is willing to eat that for me to switch to them?

Unfortunately not. Sometimes they will cover any admin fees for switching (usually about $250) of they will cover legal fees on a straight switch or transfer through a company called FNF.

But not the payout penalty. I personally think the payout penalties banks are allowed to charge are bordering on criminal. It is sucj a scam what they are able to get away with. $16,000 is steep no doubt but I have heard of payout penalties of over $30,000.

We could look at your situation though. If by switching to a mortgage at a rate of 3.69 or 3.79% you might save more than $16,000 in interest charges over the next 3 years and make it worth it.

[VladtheImpaler]

Just wanted to bump this thread to give kudos to Mike - he worked very hard on financing for an investment property for me. Drop him a line.

[bizaro86]

How soon before the end of your mortgage term do you recommend starting to look at your options for refi?

[Mike Oxlong]

How soon before the end of your mortgage term do you recommend starting to look at your options for refi?

I would start looking 5 months out. I can get you a rate hold for 120 days just to make sure you get today's low rates. If they drop in that 120 day period then you get the lower rate, however if they happen to rise in that 120 day period you are locked in to the lower rate.

If you start looking 5 months out and get the application and paperwork out of the way then as soon as you hit that 120 day mark you are ready to jump on the best rate we can find you.

[VladtheImpaler]

I would start looking 5 months out. I can get you a rate hold for 120 days just to make sure you get today's low rates. If they drop in that 120 day period then you get the lower rate, however if they happen to rise in that 120 day period you are locked in to the lower rate.

If you start looking 5 months out and get the application and paperwork out of the way then as soon as you hit that 120 day mark you are ready to jump on the best rate we can find you.

Talk to you in 12 months. ;)

[Mike Oxlong]

Here's a little video I made to explain the benefits of using a mortgage broker. Check it out if you have 4 minutes of your life to waste:
KI3WUgQV5bQ



I have another one I'll post in a few days.

[Mike Oxlong]

3.59% on a 5 year fixed right now!
Amazing rate. It had to close by November 15th but it is a great mortgage that has very flexible prepayments options.

Let me know if you are buying soon and we can get you hooked up with this rate.

[oilfan69]

3.59% on a 5 year fixed right now!
Amazing rate. It had to close by November 15th but it is a great mortgage that has very flexible prepayments options.

Let me know if you are buying soon and we can get you hooked up with this rate.
can you find Canadian lenders that will mortgage a property in phoenix?

[Mike Oxlong]

can you find Canadian lenders that will mortgage a property in phoenix?

No unfortunately not. I am looking at buying an investment property down in Phoenix as well and we have to use US brokers.

What I have heard from the US brokers so far is we need a minimum of 30% down 35% if it is an investment and you won't be living there.

Minimum of $50,000 mortgage and I was quote a rate of 7% but that was on an investment property.

They also said you could only have one mortgage in the US

[Mike Oxlong]

Here's part 2 of the DLC Mortgage Superhero.
Jamie explains how to pay your mortgage off faster:
xw-vDHpWhpk

[Mike Oxlong]

Not much new as far as interest rates go.

A few lenders are now offering 3.59% on a 5 year fixed now. So there are a few more options......great rates!!

[Da_Chief]

My sister is on a variable rate right now. Looking to close. Her mortgage company is offering 3.79 on a 5 year fixed. Obviously moving to another company would have a penalty with it. What do you recommend? The penalty is ~$3000.00

[Mike Oxlong]

My sister is on a variable rate right now. Looking to close. Her mortgage company is offering 3.79 on a 5 year fixed. Obviously moving to another company would have a penalty with it. What do you recommend? The penalty is ~$3000.00

It's tough to say without knowing all the numbers. We would need to know her remaining mortgage balance, term and ammortization left on the mortgage.

However at only $3000 for a payout penalty there is likely a good chance it is worth it for her in the long run to switch to the lower rate.

Have her get a hold of me if she wants me to run some numbers for her and figure out if it is a better option.
jamiecoulter@shaw.ca

[CRXguy]

I will PM you once I get some information from my dad. He's currently with BMO right now and the rates just went up a bit to 4%. I believe I signed a 1 year open mortgage last year(Oct/09) for his house. Basically my name is on the mortgage of his house, and he makes the payments.

Is the lowest rate at 3.59% 5 year closed?

Thanks.

[Mike Oxlong]

I will PM you once I get some information from my dad. He's currently with BMO right now and the rates just went up a bit to 4%. I believe I signed a 1 year open mortgage last year(Oct/09) for his house. Basically my name is on the mortgage of his house, and he makes the payments.

Is the lowest rate at 3.59% 5 year closed?

Thanks.

Yes, the 3.59% is a 5 year fixed closed mortgage.
Let me know ASAP and we can put the rate hold in for you guys.

[oilfan69]

Do you have a website?

[Mike Oxlong]

Do you have a website?

Yep.

www.jamiecoulter.ca (http://www.jamiecoulter.ca)

[Mike Oxlong]

Fixed rates just keep dropping.

3.49% on a 5 year fixed now.

Bank of Canada announcement on the Variable rates tomorrow.....

[Mike Oxlong]

Not too much new in the mortgage market.

Rates are still extremely low.
3.49% on a 5 year fixed
3.39% on a 4 year fixed.

Bank of Canada didn't move prime (on October 22) so it remains at 3%

Great rates available if you are looking to buy a place or your mortgage is happening to come up for renewal anytime soon.

If you have other expensive credit card debt and want to consolidate this might be the time to think about it.

Happy to answer any mortgage related questions - just let me know!

[Mike Oxlong]

Rates are about to climb!

We have been getting emails from lenders all day warning rates are about to jump.
If you have a renewal coming up, or are thinking of buying get a hold of me ASAP and I can get you a 120 day rate hold before they climb.

[Mike Oxlong]

So rates did climb last week but nothing too severe. Basically the best 5 year rate is now 3.69% up from 3.49% last week.

3.69% is still an amazing 5 year rate.

Fire away with any questions....

[Mike Oxlong]

Bank of Canada expected to stand pat on Interest rates again.....Looks like no increases (on variable) until next year

http://www.cbc.ca/money/story/2010/12/06/money-boc-preview.html?ref=rss

[Mike Oxlong]

As expected the Bank of Canada leaves the key overnight rate at 1%
http://www.calgaryherald.com/business/Bank+Canada+keeps+rate+hold+economy+weaker+than+ex pected/3939042/story.html?cid=megadrop_story

And if they aren't going to raise rates now, when will they?
http://www.financialpost.com/When+will+hike+rates/3930819/story.html

[Mike Oxlong]

Another jump in fixed rates on the way.

Looks like the 5 year fixed will land somewhere around 4.04%. Fairly significant increase. RBC raised yesterday and everyone else is following suit today.

[Mike Oxlong]

The rate increase wasn't quite as drastic as expected.
Looks like the best 5 year rate now will be about 3.89%.

[Mike Oxlong]

Looks like the government is set to introduce new mortgage rules tomorrow morning.


Mortgage amortization periods will be reduced to 30 years from 35 years.
The maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85 per cent from the current 90 per cent.
The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.
http://www.ctv.ca/CTVNews/TopStories...-rules-110116/ (http://www.ctv.ca/CTVNews/TopStories/20110116/mortgage-rules-110116/)

[fotze]

What the best variable 5 year and closed 5 year rates you are seeing?

[Realtor 1]

Mike, are people still able to lock in for 4 months on the 35 year by being pre qualified?

[Mike Oxlong]

Sorry I missed those questions above....I need to monitor my own thread a bit more closely.

Best 5 year fixed right now is 3.89% and some lenders have a special for 3.79% if you are closing within 45 days.
Best variable is Prime less .7%

As far as being locked in on the 35 year amortization. Pre approvals do not count. You need to have a firm deal in place before March 18th if you want the 35 year am.

[Realtor 1]

Thank You

Also, for those who follow this thread, I'm working on a few deals with Mike and he is great at what he does. Best of all he is easily approachable.

[troutman]

thank you

also, for those who follow this thread, i'm working on a few deals with mike and he is great at what he does. Best of all he is easily approachable.

+1

[Mike Oxlong]

Hey Everyone...sorry I haven't updated in a while.

Some increases on fixed rates recently. They originally made a big jump up to about 4.14% on a 5 year fixed but have settled down a bit now and there are a number of lenders offering 3.99% on a 5 year fixed and some offering 3.94% on a quick close.

Bank of Canada also kept the key overnight rate at 1%. Which means no change for those of you in variable rates. Next Bank of Canada rate announcement coming up on April 12th.

[Mike Oxlong]

Just a quick update.
As of Friday last week (March 18th) 35 year amortizations are no longer available. Maximum amortization available now is 30 years.

The yo-yo cycle of fixed rates continue. After the increase from a few weeks ago a lot of lenders are back to offering 3.89% on a 5 year fixed.

[Deegee]

35 year amortizations are still available on conventional Mortgages. We are still offering them and I would assume others are as well.

On high ratio Mortgages they are not available.

[Mike Oxlong]

35 year amortizations are still available on conventional Mortgages. We are still offering them and I would assume others are as well.

On high ratio Mortgages they are not available.

Yes you are correct. In fact 40 year amortizations are still available on conventional mortgages as well from some lenders.

[Deegee]

Yes you are correct. In fact 40 year amortizations are still available on conventional mortgages as well from some lenders.

There are some interesting programs with CMHC that allow existing clients to use 40 year amortizations as well as lend above property value, they just aren't really advertised.

[Mike Oxlong]

Just a quick update on where rates are sitting. They took a fairly big jump a few weeks ago up to the 4.29% range for a 5 year fixed.

However over the last week they have started to drop again, you can get a 5 year for 3.99% again.

Lots of good rates all all term lengths right now.

[Mike Oxlong]

Just another quick update. Rates have dropped again. There are a few lenders offering 3.69% on a 5 year fixed. 120 day rate holds available as well.

If your mortgage is up for renewal soon it's a good idea to lock your rate in. If your looking at buying contact me to get pre approved at we can lock in your rate as well.

[hamburgler]

I just got 5 year fixed closed at 3.55 through Scotiabank. Didn't go through a broker as I have an excellent relationship with my personal banker. Deal funds next week for me. Is this a good rate for the current market? I thought it was amazing.

[ranchlandsselling]

I just got 5 year fixed closed at 3.55 through Scotiabank. Didn't go through a broker as I have an excellent relationship with my personal banker. Deal funds next week for me. Is this a good rate for the current market? I thought it was amazing.

Pretty good rate, well done! I could have only done a few bps better.

[Robbob]

Question about blending rates. Is there a magic point in the term of the mortgage where the companies are more then happy to blend without makes you jump through hoops? In a couple weeks I will be 2 years into a 5 year mortgage, is this something I should look at now or wait till the half way point (which would be February).

[Cecil Terwilliger]

I just got 5 year fixed closed at 3.55 through Scotiabank. Didn't go through a broker as I have an excellent relationship with my personal banker. Deal funds next week for me. Is this a good rate for the current market? I thought it was amazing.


ATB is currently offering 3.09 :eek:. Just an insane rate. First Calgary is currently offering 3.49.

Both for 5 year fixed. AFAIK those are the best rates around right now.

3.55 certainly isn't bad either.

[bomber317]

Just heard from RBC

2.99 @ 4 year fixed - 120 day rate hold.

[Robbob]

This is why I want to blend my rate if possible. if I can get a blended rate sub 4 I will be extremely happy.

[Cecil Terwilliger]

Just heard from RBC

2.99 @ 4 year fixed - 120 day rate hold.

Do you know if that is advertised anywhere or was it offered to you by a personal banker or a broker?

Their website lists a 4 year fixed at 3.99.

[albertGQ]

This is why I want to blend my rate if possible. if I can get a blended rate sub 4 I will be extremely happy.

My mortgage is with ATB and I tried to blend my rate with their 3.09% rate but they wouldn't allow it

[bomber317]

Do you know if that is advertised anywhere or was it offered to you by a personal banker or a broker?

Their website lists a 4 year fixed at 3.99.

From one of their RBC mortgage specialist. The rate was just announced today.

This is a discounted rate and not a posted rate.

I currently have a 1 year builder rate hold with them, so they update me with rate changes when they occur.

[Robbob]

My mortgage is with ATB and I tried to blend my rate with their 3.09% rate but they wouldn't allow it

That is what I am thinking but maybe it depends how much term you have left...at least I hope. Worst case they say no.

[Cecil Terwilliger]

It is not unusual for FI's to not allow early renewals.

One option is to ask for a penalty amount. Then judge the possible savings of the 3.09% vs whatever rate you currently have.

If the penalty amount is less than the savings then you can payout the mortgage and basically just apply for a new mtg at the new amount.

Or you can just tell ATB to go #### themselves and go to another FI. With all the competitive rates out there you should get pretty close to 3.09. You'd still have to pay a penalty but you'd also get to stick it to ATB for not letting you early renew.

AFAIK a few Credit Unions will allow early renewals but each bank has their own policy.

[Mike Oxlong]

Quick update on rates. While fixed rates are still dropping and at an incredibly low level, the variable rates are increasing.

RBC led the charge by moving variable rate from Prime less .7 to prime less .55.
The Bank of Canada hasn't changed the overnight rate which is what variable rates are based on, the banks are just decreasing the discount on prime they are giving out.

As I said RBC started things and all the other banks are following suit. There are a few lenders that will hold off for a few days but pretty much everyone will be making the change soon.

The spread between variable and a 5 year fixed is even smaller now.

Fire away with any questions.

[Mike Oxlong]

Some amazingly low rates still out there.

3.09% on a 4 year fixed is a pretty amazing deal right now.

Let me know if I can answer any questions.

[Mike Oxlong]

The discounts on variable rates keep decreasing. Most banks are offering in the range of prime less .2 to .3 at the most now. There are exceptions and some lenders will have specials but for the most part the spread between variable and long term fixed rates is really shrinking. With prime at 3% you are looking at 2.7ish for a variable now.

There is a great deal on a 4 year fixed rate now at 2.99%.

Fixed are looking like the better alternative with the spread between the options so small right now.

As always fire away with questions.

[Mike Oxlong]

Fixed rates appear to be on the rise. Some upward movement from some of the big 5 today indicate all the other lenders will follow soon.

I can usually get 120 day rate holds on today's rates. If you are looking at buying, refinancing or renewing your mortgage anytime soon let me know and we can hold today's rate for you.

Just a friendly reminder - As a broker I work for you and NOT a lender. I have access to over 40 lenders so I find you the best rate and the mortgage options that work for you and your lifestyle. Best of all my services are free to you.

Why go to a bank where you are limited to only their rates and their options?
Work with a professional that has your best interest in mind.

[AFireInside]

I should have done this sooner.

We used Jamie (Mike Oxlong) this summer for our mortgage. Just wanted to say he was great, worked hard for us, and was easy to get in contact with whenever I had questions, which was often lol....

I'm sure there are lots of testimonials in this thread but thought I would throw it out there.

[Mike Oxlong]

Rates are still very low!

5 year fixed currently at 3.39%

4 year fixed rate at 3.09%
I think this is the best deal out there right now. Fantastic rate and you get to lock it in for 4 years.

I can get you 120 day rate holds as well. If you are buying, thinking about refinancing or your mortgage is up for renewal soon let me know.

One other thing to note with these rates - this lender has fantastic prepayment options. They are not restrictive at all and in fact some of the most flexible in the entire industry.It's the best of both worlds.

[Mike Oxlong]

In another thread there was a brief discussion on the difference between going to a bank vs. a broker for your mortgage. I didn't want to hijack that thread but I feel it is an important topic to be discussed so people understand the differences and can make educated financial decisions when purchasing a home.

When you go a bank you are going to deal with what they call a "mortgage specialist" These specialists are not licenced in anyway, they have no formal education or training in mortgages. These "specialists" could have been selling credit cards yesterday and might be a bank teller tomorrow. Most importantly these "specialists" work for the bank. They have the banks best interests in mind not yours.

When you talk to a specialist at a bank you are going to get ONE option. You get that banks rates, and mortgage options, that's it. Your financial goals might not be in line with what that bank is going to offer you. It's like trying to fit a square peg into a round hole sometimes.

So I'm sure you are thinking that you can just go out and shop around yourself for a mortgage from different banks, which of course you could. However not only will it cost you lots of time and leg work but every bank you go to is going to potentially pull your credit bureau which will hurt your credit score. A broker will pull your credit bureau once and can shop it to all of the lenders.

Mortgage brokers in Alberta are licenced and are required to go through an educational course in order to obtain that licence. Now I don't want to make it sound like they are getting PHD's or anything but there is an educational process that is required. Additionally to obtain your AMP designation continuing education is required every year.

Mortgage brokers have access to a whole bunch of lenders. I have access to about 40 different lenders and some private lenders as well.

Most important thing is that I work for YOU. I don't work for a bank, I don't have an allegiance to any bank. My business is based on happy clients and referrals. It is in my best interest to make sure you are happy with your experience which means getting you the best rate possible as well as getting you the mortgage options that work for you. Because I have access to so many lenders I am able to do that unlike a bank.

A good broker is going to offer you the best rate available right off the bat. There is no need for negotiation with them or haggling. They are working for you.

I had a client recently who's mortgage was up for renewal. He contacted me and let me know what his current bank had offered him as a renewal rate. I was able to beat that rate quite easily, when he went back to his bank to let them know, all of a sudden they were able to drop their rate to match. Why wouldn't that bank just offer their best rate to him right off the bat? He just finished a 5 year term with them where he paid them THOUSANDS of dollars in interest. Yet they still tried sucking as much as they possible could from him.

If there is one thing I want anyone reading this to remember is to NEVER EVER sign your renewal notice from your bank. It can save you thousands of dollars by speaking to a broker and finding out the best available rate at their time of renewal. 9 times out of 10 your current lender is going to offer you a higher rate to try and make as much as they can from you. They are hoping you are just going to sign and not shop around. Unfortunately a lot of people do sign and pay way more than they need to.

Just please use that broker if they offer you a better rate! If your lender comes back and says they will match, why go back to them after they just tried screwing you?

Oh one other important thing to remember about using a broker.......our services are FREE. It doesn't cost you anything.

As always please feel free to fire away with any questions. I am happy to act as a resource on this board to help people make informed decisions on the biggest financial decisions on their lives.

[Mike Oxlong]

In another thread there was a brief discussion on the difference between going to a bank vs. a broker for your mortgage. I didn't want to hijack that thread but I feel it is an important topic to be discussed so people understand the differences and can make educated financial decisions when purchasing a home.

When you go a bank you are going to deal with what they call a "mortgage specialist" These specialists are not licenced in anyway, they have nor formal education or training in mortgages. These "specialists" could have been selling credit cards yesterday and might be a bank teller tomorrow. Most importantly these "specialists" work for the bank. They have the banks best interests in mind not yours.

When you talk to a specialist at a bank you are going to get ONE option. You get that banks rates, and mortgage options, that's it. Your financial goals might not be in line with what that bank is going to offer you. It's like trying to fit a square peg into a round hole.

So I'm sure you are thinking that you can just go out and shop around yourself for a mortgage from different banks, which of course you could. However not only will it cost you lots of time and leg work but every bank you go to is going to pull your credit bureau which will hurt your credit score.

Mortgage brokers in Alberta are licenced and are required to go through an educational course in order to obtain that licence. Now I don't want to make it sound like they are getting PHD's or anything but there is an educational procees that is required. Additional to obtain your AMP designation continuing education is required every year.

Mortgage brokers have access to a whole bunch of lenders. I have access to about 40 different lenders and some private lenders as well.

Most important thing is that I work for YOU. I don't work for a bank, I don't have an allegiance to any bank. My business is based on happy clients and referrals. It is in my best interest to make sure you are happy with your experience which means getting you the best rate possible as well as getting you the mortgage options that work for you. Because I have access to so many lenders I am abe to do that unlike a bank.

A good broker is going to offer you the best rate available right off the bat. There is no negotiation with them or haggling.

I had a client recently who's mortgage was up for renewal. He contacted me and let me know what is current bank had offered him as a renewal rate. I was able to beat that rate quite easily, when he went back to his bank to let them know, all of a sudden they were able to drop their rate to match. Why wouldn't that bank just offer their best rate to him right off the bat? He just finished a 5 year term with them where he paid them THOUSANDS of dollars in interest. Yet they still tried sucking as much as they possible could from him.

If there is one thing I want anyone reading this to remember is to NEVER EVER sign your renewal notice from your bank. It can save you thousands of dollars by speaking to a broker and finding out the best available rate at their time of renewal. 9 times out of 10 your current lender is going to offer you a higher rate to try and make as much as they can from you. They are hoping you are just going to sign and not shop around. Unfortunately a lot of pople do sign and pay way more than they need to.

Just please use that broker if they offer you a better rate! If your lender comes back and says they will match, why go back to them after they just tried screwing you?

Oh one other important thing to remember about using a broker.......our services are FREE. It doesn't cost you anything.

As always please feel free to fire away with any questions. I am happy to act as a resource on this board to help people make informed decisions on the biggest financial decisions on their lives.

[bomba]

Hey I have a question for you. I've met a number of people over the last couple years that tell me they have multiple properties that they use to generate rental income (10+ properties). Typically these guys don't even seem that old (35-40s). Are they telling me a lie or is there a way to keep funding new mortgages?

I'm trying to get an investment property strategy going, but don't quite understand how it is possible to get the funding in place.

[Mike Oxlong]

Hey I have a question for you. I've met a number of people over the last couple years that tell me they have multiple properties that they use to generate rental income (10+ properties). Typically these guys don't even seem that old (35-40s). Are they telling me a lie or is there a way to keep funding new mortgages?

I'm trying to get an investment property strategy going, but don't quite understand how it is possible to get the funding in place.

There are lenders that have great progams that are targetted for people who are looking to put together a rental portfolio. That being said you still have to be able to properly qualify for the properties. Which means having to put down at least 20% now for a down payment.

About 4 or 5 years ago rules regarding mortgages ingeneral were far different but particularly for rental properties. You could get a mortgage for rental property with 5% and sometimes even zero down. This allowed a lot of people to get into the game with a lot less cash and to accumulate the properties they have.

It's still possible to make it happen, just requires a little more work and some more cash up front to use as a down payment now.

[Redline]

We used jamie this month for the mortgage on our new house. We'r very happy with the mortgage he found for us and I have to say he was outstanding for us in not ideal conditions. Thanks Jamie! We'll be in touch when our rental property comes around for renewal.

Paul

[bizaro86]

Hey I have a question for you. I've met a number of people over the last couple years that tell me they have multiple properties that they use to generate rental income (10+ properties). Typically these guys don't even seem that old (35-40s). Are they telling me a lie or is there a way to keep funding new mortgages?

I'm trying to get an investment property strategy going, but don't quite understand how it is possible to get the funding in place.

New investment mortgages can be obtained by netting a percentage of the rents off of the mortgages for the investment properties for qualifying purposes. So if you buy cash-flowing properties, you should be able to qualify for a basically unlimited amount of mortgages as long as you have downpayment funsd, although the lender's that you can use will decrease over time. (Firstline, RBC, TD, National are some of the better ones now, Scotia just limited investors to 5 properties total recently) Your loan to value requirements may also go up. (IE initially you'll need 20% down, may eventually need to go to 25%+ down)

A good book involving this is Peter Kinch's The Canadian Real Estate Action Plan. Or sit down with a good broker who does investment mortgages and have them work through a plan with you. You could also PM me if you'd like to sit down for a coffee downtown and chat about real estate investment. (I'm an investor, not a broker, so I'm not threadcapping Jamie's thread or anything like that. I'm sure he's a great broker)

[Mike Oxlong]

Quick rate update

2.99% on a 4 year fixed is a great deal right now.

I know BMO is currently advertising a 5 year at 2.99% but it does have some fairly strict restrictions. I posted this in another thread but for those that missed it here they are:
- max amortization 25 years (no exceptions)

- pre-payments capped at 10% and 10% (no exceptions)

- you are not allowed to miss or “skip” payments for any reason (no exceptions)

- only available until Jan 25th

- rate hold only 90 days; if rates go down in that time no float down allowed, must close within 90 days from date of application (not date of approval) (no exceptions)

- rate not available on their Homeowner Readiline (similar to all in one mixed fixed and variable mortgage)

- you are completely locked in until maturity

- only way you can break this mortgage is through moving, dying, refinancing or renewing with them at a similar or higher term (no exceptions)

- when you move, the IRD is so high because of the deep discounting that you have little option but to keep it with them

The lenders offering 2.99% on a 4 year have excellent pre payment options and are not nearly as restrictive.

[Mike Oxlong]

Bank of Canada holds rates steady
http://www.calgarysun.com/2012/01/17/boc-leaves-rate-unchanged

No change again for those of you in a variable rate

[Mike Oxlong]

3.19% on a 5 year fixed
2.89% on a 3 year fixed currently
Both have excellent pre payment options.

Some good rates out there......BMO has launched their 2.99% 5 year fixed again, but please beware it is a very restrictive mortgage and could end up costing you a lot of money in the long run.

Questions are welcome!

[flamesrule_kipper34]

Isn't First National offering a 3.09% 5 year fixed as well?

[Mike Oxlong]

Isn't First National offering a 3.09% 5 year fixed as well?

No First National isn't offering that rate at this time...

Not much change on the rate front.

3.19% 5 year fixed
2.99% 4 year fixed
2.89% 3 year fixed

[flamesrule_kipper34]

ICICI Bank had a rate of 3.04% fixed at 5 years last week, not sure if it's still available.

[Mike Oxlong]

Someone in the off topic forum asked a good question about getting into a 10 year mortgage. With interest rate at historic lows it could be a good long term strategy.

10 year rates are between 3.89% and 3.99% right now.

Here is an intersting FAQ article from one of the lenders answering some questions on 10 year mortgages:
I am very interested in the 10 year term, but I have concerns...

Q. What is the penalty on a 10 year term?
A. According to the Interest Act, once 5 years has passed in the term, the maximum penalty is 3 months interest. For the first 5 years, the penalty is the greater of the interest rate differential and 3 months interest.

Q. I heard a statistic that 80% of mortgages refinance within the first 3 years. My client could get stuck paying a hefty interest rate differential.
A. All of ING DIRECT’s mortgages are transferable. If the client moves, he can transfer his mortgage to the new property and take a blended rate to avoid paying a penalty.

Q. But what if the client does not buy a new property?
A. In this case, the client will have to pay a penalty – the greater of the interest rate differential and 3 months interest. But consider the following: at ING DIRECT, we will calculate the penalty on the balance minus the unused portion of the 25% of initial capital (pre-payment privilege). AND ING DIRECT only has one rate, therefore our penalty will be calculated using the rate of 3.99% and not a much higher ‘posted’ rate like some banks who are at 6.75% posted for 10 years!

Q. I get the impression that there is a lot of risk involved in a 10 year product.
A. Rates are at historic lows. Economists are telling us that the rates could start to increase as early as the end of 2012. There is a strong possibility that in 3 years the 7 and 10 year rates will be higher than 3.99%. For ING DIRECT, our interest rate differential calculation would be negative leaving only a 3 month interest penalty for the client. Coupled with our transferability options, the risks for the client are low.

Q. What are the advantages of a 10 year term.
A. The advantages are a rate of less than 4% for 10 years! Two years ago the 5 year rate was at 5.25%... we have no idea where rates are going. With all that is happening in the global economy, mortgage stability offers a great financial security.

[Mike Oxlong]

3.09% on a 5 year fixed right now.....rates just seem to keep getting lower.

I'm amazed they have dropped this low. Good time to take advantage if you happen to be buying or your mortgage is up for renewal.

120 day rate holds available as well. PM me if you need anymore information.

[fotze]

3.09% on a 5 year fixed right now.....rates just seem to keep getting lower.

I'm amazed they have dropped this low. Good time to take advantage if you happen to be buying or your mortgage is up for renewal.

120 day rate holds available as well. PM me if you need anymore information.
Is this with First National?

[Mike Oxlong]

First national is one of the lenders currently offering that rate. There are a few out there offering 3.09% though. Lots of options.

[Mike Oxlong]

Here's a breakdown of the new Mortgage rules introduced by the Governement of Canada:

Government of Canada’s announcement, regarding changes to Government Backed Insured Mortgages, effective July 9th 2012.

1) Amortization Period is REDUCED to 25 years for high ratio applications. Banks can continue to offer 30 year amortization on LTV’s 80% or less

2) Refinancing is REDUCED from 85% LTV to 80%
3) Limit GDS to 39% and TDS to 44%

4) Maximum Purchase Price for government backed mortgage insurance is $1 Million. Homes above $1 Million must have 20% downpayment

[Mike Oxlong]

Rates keep dropping.
A couple lenders now offering 2.99% on a 5 year fixed!

If you are looking to buy a place, want to refinance or if your mortgage is coming up for renewal soon let me know and we can get a rate hold put in place for you.

[Mike Oxlong]

Great rate available on a 3 year fixed right now, 2.69% if you are looking for a slightly shorter term.

[KeepCalmCarryOn]

I have no need for a mortgage, but I thought I'd let you know that your username and the "tag" below it are hilarious!

[shermanator]

Looks like RBC is raising their rates on 3 and 5 year mortgages. I'm renewing in a month, and I can't see myself going with them....

http://business.financialpost.com/2012/08/20/rbc-raises-mortgage-rates-2/

[Deegee]

Looks like RBC is raising their rates on 3 and 5 year mortgages. I'm renewing in a month, and I can't see myself going with them....

http://business.financialpost.com/2012/08/20/rbc-raises-mortgage-rates-2/

Articles like that mean nothing because I can't imagine anyone gets the posted rates.

I know our Credit Union that I work for, our 5 Year posted is 4.99%, however most everyone gets 2.99% - 3.19%.

[Jimmy Stang]

So my current term is up in May, and CIBC told me that I can renegotiate in January as it will be 4 months/120 days in advance. Do you know if this renegotiation period would allow me to change lenders without penalty also, or is this their way of getting me to commit with them before I can hit the open market?

[killer_carlson]

Oxlong, do you have an idea what the rate would be for commercial space?

Do you broker that financing as well?

[Deegee]

So my current term is up in May, and CIBC told me that I can renegotiate in January as it will be 4 months/120 days in advance. Do you know if this renegotiation period would allow me to change lenders without penalty also, or is this their way of getting me to commit with them before I can hit the open market?

They don't want you to hit open market.

[Mike Oxlong]

So my current term is up in May, and CIBC told me that I can renegotiate in January as it will be 4 months/120 days in advance. Do you know if this renegotiation period would allow me to change lenders without penalty also, or is this their way of getting me to commit with them before I can hit the open market?

Exactly what Deegee said. They are trying to get you to come back to them for another 5 year term and not have you shop around for a better rate. I would advise contacting a broker (I know a great one) in January and have them shop around for the best rates for you at that time.

You have no commitment to CIBC at that point. Good chance they are going to send you a renewal notice with a higher rate just hoping you will sign it and not shop around. Don't let them get away with it. You owe it to yourself to shop around. Could literally save you thousands of dollars.

[Mike Oxlong]

Oxlong, do you have an idea what the rate would be for commercial space?

Do you broker that financing as well?

Hey Killer,

Sorry I only do residential financing at this point.

(And apologies to everyone for the delayed reponse. Been away)

[Deegee]

Oxlong, do you have an idea what the rate would be for commercial space?

Do you broker that financing as well?

I did not want to hijack Mike's thread. What type of commercial space? You can PM me. The Credit Union I work for has some dedicated business lenders who know their stuff. I can have them get a hold of you.

[Deegee]

Mike, what is the maximum size acreage lenders like to give residential Mortgages on?

[Mike Oxlong]

Quick update on rates.

3 year fixed - 2.69%
5 year fixed - 3.09%

Let me know if anyone has questions on anything!

[Canehdianman]

What is the standard variable rate right now?