Bank of Canada drop rates 75 basis points - Page 2 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Bertuzzied · 12-09-2008, 01:06 PM

Quote:

Originally Posted by fotze

From ingrid? That should offset your layoff thats coming soon.

Damn that variable rate is cheap. I'm locked at 5.09, do I get greedy and break it?

You can try but no one does because the interest differential is huge. Unless you hope that bank prime go to 2% or something like that.

metallicat · 12-09-2008, 01:29 PM

I am pretty sure my heloc is prime plus nothing, but I could be wrong.

Bertuzzied · 12-09-2008, 01:41 PM

Quote:

Originally Posted by oilers_fan

I am pretty sure my heloc is prime plus nothing, but I could be wrong.

You are prob right. 99% of Helocs are at prime. Some lucky ones got the Prime -1% from ATB but not many. That is not counting their promotion of a year at prime -1%.

Winsor_Pilates · 12-09-2008, 01:51 PM

For those more in tune with interest rates, what does this mean in the medium-long term?
Would you expect rate to stay low for some time, or these drops to be followed by big increases in the future?

Nancy · 12-09-2008, 01:57 PM

Quote:

Originally Posted by Bertuzzied

You can try but no one does because the interest differential is huge. Unless you hope that bank prime go to 2% or something like that.

If you were on a fixed mortgage and had 3 years left, don't they use the current 3 year fixed rate to determine what penalty should be applied?

Patrick · 12-09-2008, 01:57 PM

I expect another small drop in Jan. 25-50%.

Bertuzzied · 12-09-2008, 02:08 PM

Quote:

Originally Posted by Nancy

If you were on a fixed mortgage and had 3 years left, don't they use the current 3 year fixed rate to determine what penalty should be applied?

Here you go. it's either 3 months interest or interest differential. Umm what a crappy site. they totally messed up the 3months interest penalty. It should be mort balance X current interest rate, divide by 12 and then times by 3.

Three Months Interest Penalty

Paying off your mortgage before the maturity date, most lending institutions charge three months interest penalty (or an interest differential penalty).

Your present mortgage balance is multiplied by your current interest rate and multiplied by three.

Interest Rate Differential

This is the difference between the interest rate on your mortgage contract compared to the rate at which the lending institution can re-lend the money.

Example:

If your mortgage has a balance of $150,000 at 7%, you have 3 years left to go and the current 2 year mortgage rate is 5%. Then the lending institution will charge:

$150,000 X 36 months X 2% (7% - 5%) = $9,000

Fobulous · 12-09-2008, 02:26 PM

Quote:

Originally Posted by fotze

From ingrid? That should offset your layoff thats coming soon.

Damn that variable rate is cheap. I'm locked at 5.09, do I get greedy and break it?

Yup, got that rate from Ingrid a few months back.

Now if only the price of oil could shoot back up to the mid-80's everything would be good again.

Fobulous · 12-09-2008, 02:27 PM

Quote:

Originally Posted by Mike Oxlong

I'll keep a special eye on First National as well for Fobulous.

Thanks man!!

photon · 12-09-2008, 02:31 PM

Quote:

Originally Posted by Bertuzzied

You are prob right. 99% of Helocs are at prime. Some lucky ones got the Prime -1% from ATB but not many. That is not counting their promotion of a year at prime -1%.

I've got two at prime - 0.5% from BMO, pretty happy with them. Every once in a while I think about converting them, but not yet.

Bertuzzied · 12-09-2008, 02:35 PM

Quote:

Originally Posted by photon

I've got two at prime - 0.5% from BMO, pretty happy with them. Every once in a while I think about converting them, but not yet.

Really? and it's ongoing? how did you manage that? Maybe i should switch. i would get a hell of a lot of airmiles.

Mike Oxlong · 12-09-2008, 04:00 PM

RBC is only dropping .5% as well.

I am guessing that will be the concensus for the 5 big banks. Wishful thinking they would pass the full rate drop on to us.

Mike Oxlong · 12-09-2008, 04:03 PM

Quote:

Originally Posted by fotze

From ingrid? That should offset your layoff thats coming soon.

Damn that variable rate is cheap. I'm locked at 5.09, do I get greedy and break it?

Depends how much longer you are locked in at 5.09 for. Call your lender and they will tell you how much it is to get out of the mortgage.

If you go variable you can likely get 4.1% for now and it is likely going to drop again in January but beyond there who knows what will happen.

Russic · 12-09-2008, 04:06 PM

Quote:

Originally Posted by djwazzy

I got Prime - 0.75% for 5 years on a fully open variable from Scotiabank, but that was back in September...

Hey I'm in the same boat. This news is comforting to say the least. Now if I only didn't fear getting layed off I could throw all my spare money at the mortgage.

Deegee · 12-09-2008, 05:40 PM

Quote:

Originally Posted by Mike Oxlong

If they do drop those of you in a variable rate mortgage are going to see your mortgage payments drop once again.

With the floating rate offered at our financial institution, we do not lower payments as Prime drops, members just get the benefit of a mortgage paid off sooner.

We do review our floating rate mortgages yearly and raise payments if that is needed to keep the amortization schedule on track, though.

photon · 12-09-2008, 05:45 PM

Quote:

Originally Posted by Bertuzzied

Really? and it's ongoing? how did you manage that? Maybe i should switch. i would get a hell of a lot of airmiles.

Yup, ongoing!

To be honest, I'm pretty sure it was a mistake on their part, but once they'd offered it they didn't back out.

I'm not ever letting them go.

Bertuzzied · 12-09-2008, 05:48 PM

Quote:

Originally Posted by photon

Yup, ongoing!

To be honest, I'm pretty sure it was a mistake on their part, but once they'd offered it they didn't back out.

I'm not ever letting them go.

Awesome deal. and to have 2 of them too. haha. Want to lend me some money at prime? hehe

photon · 12-09-2008, 06:02 PM

Heh I've thought about that, if all else fails I can probably make 0.5% easy.

Mike Oxlong · 12-11-2008, 09:09 AM

Quote:

Originally Posted by Fobulous

I have the same deal that everyone else has mentioned... prime - 0.75%; however, my mortgage is through First National.

Mike Oxlong... any idea of whether or not First National will be dropping its lending rate by 0.75%? They have always been slow in implementing these changes...

I just got notified this morning that as of January 1st, First National will be dropping their Prime rate to 3.5%. A little slow compared to some but at least it is on the way for you.

Enjoy the lower payments or putting all that extra money to your principal!

HalifaxDrunk · 12-11-2008, 10:00 AM

I have 4.5% Fixed, matures Aug 2010. This was a good rate when I signed 3.5 years ago when a conventional mortgage was around 5.8%. The mortgage also pays 1 air mile for each dollar of interest paid.

Current rates kinda make me want to see if I can lock into another good one...