Mortgage Broker

[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]

Originally Posted by 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?

They don't want you to hit open market.

[Mike Oxlong]

Originally Posted by 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?

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]

Originally Posted by killer_carlson

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]

Originally Posted by killer_carlson

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?

[Mike Oxlong]

Most are around Prime less .10

However you can find specials that are in the Prime less .25 to .35 range. They have special conditions on them however, things like quick closing, and has to be an insured mortgage. . That being said if you fit the conditions Prime less .35 is a decent rate.

Otherwise I don't see a benefit going variable when you can lock in for 5 years at 3.09%.
(That's just strictly my opinion though. You have to decide what you are comfortable with)

[Mike Oxlong]

5 year fixed available at 2.99% right now.

[Mike Oxlong]

Rates are still great if you are looking to buy, refinance or your mortgage is up for renwal.

2.94% on a 5 year fixed
2.69% on a 3 year fixed

Happy to answer any questions you may have.

[Mike Oxlong]

Rates drop again!

2.89% 5 year fixed
2.65% 3 year fixed

120 day rate holds are available.

Let me know if you are thinking about buying or your mortgage is coming up for renewal soon!

[Badgers Nose]

My mortgage renews in 4 months. Scotiabank offered 3.19 for 5 and 2.99 for 3.

If I move to another bank, do I pay penalties?

I am ten years into my mortgage, was most of the interest paid in that time?

[Mike Oxlong]

Originally Posted by Badgers Nose

My mortgage renews in 4 months. Scotiabank offered 3.19 for 5 and 2.99 for 3.

If I move to another bank, do I pay penalties?

I am ten years into my mortgage, was most of the interest paid in that time?

You won't pay any penalties to move to another bank. They may charge you a small discharge fee of approx $200 but the lower interest rate will certainly outweigh that.

As for the interest paid in the first 10 years you will have certainly paid a lot but it depends on what your original amortization was. Send me an email and I can try to send you an amortization table that shows the interest paid so far.

[Mike Oxlong]

5 year fixed at 2.84%
10 year fixed at 3.69%

Fire away with questions.

[Aleks]

Originally Posted by Mike Oxlong

5 year fixed at 2.84%
10 year fixed at 3.69%

Fire away with questions.

Is it worth locking to 10 years? My house will be complete end of may, and we are kicking around a 5 year 2.89 or go the extra with 10. I'm leery as I've always been a variable rate guy and it's been good for me, but I also know it has to get rocky at some point.... Your honest opinion? Fwiw I'm also a weekly accelerated payment person, not sure if that plays into it. Where can I see the trend of the 10 year rates on a graph somewhere?

[Dan02]

Depends on where you see interest rates being in 5 years, it seems the break even point would be about 4.69 on a 5 year mortgage 5 years from now.

However, if you were planning on doing lump sums against the mortgage or paying anything more then the minimum payment the balance shifts further towards the shorter lower rate mortgage.

[temple5]

Does anyone have a chart on variable rates vs fixed rates over say the last 40 years.

I read once (maybe on CP) that variable rates have always been lower over a given time period if you average them out over the life of a mortgage.

Thanks

[bizaro86]

Originally Posted by temple5

Does anyone have a chart on variable rates vs fixed rates over say the last 40 years.

I read once (maybe on CP) that variable rates have always been lower over a given time period if you average them out over the life of a mortgage.

Thanks

Not always, but they've been lower most of the time. (~80%, iirc)