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Originally Posted by MillerTime GFG
Thanks mate.
The market has dried up a fair bit, so lenders are relentless on renewal business these days. Not to mention there are more mortgages coming up for renewal in '25 and '26 than ever before.
Rates starting with a "3" are few and far between these days with how bond yields have gone the last month or so. And it's looking like less of a guarantee BoC will lower rates on the 30th, for any variable rate holders.
Predictions are still that the overnight rate should drop another 50-75 bps by the end of 2026 though, so a lot of households are electing to take a variable rate right now to "ride it out" for a year or so to see if they can time locking into a fixed rate (free of charge) when they go down.
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Yes, this has been our strategy as fixed rates weren’t great. We went with a prime - 1% variable and we’ll see where things go in the next 12-18 months.
Oddly enough, our bank didn’t even call us with offers for our renewal. They sent us a package and never followed up, so it really seemed like they didn’t want to go after our business and their proposed rates weren’t close to what we could get with a mortgage broker. The previous mortgage specialist was a family friend and I know she retired, so maybe we just fell through the cracks?
Another weird thing is our bank is being sticky about a penalty for breaking the mortgage, even though the mortgage was end of term. The broker explained they give a bit of wiggle room on both sides in terms of dates to ensure everything gets closed in time, but our previous bank wants to tag us with a fairly steep penalty, which is really weird.