Getting the best mortgage rate - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Sheva #7 · 08-16-2013, 01:52 PM

Hi guys,

Looking to buy my first condo in a few months and was wondering if anyone can advise/recommend the best way to get the lowest rate for a mortgage? is it the broker or the bank (I'm with TD), if so which ones have you had the best experiences with?

I'm looking at doing 5-year fixed and the best rate i got so far was 3.29-3.39%.

Thanks!!

Swayze11 · 08-16-2013, 01:53 PM

Did interest rates really go up that quick?

My buddy just bought a place and got 5 year fixed at 2.89%.

I will ask him who he went through - he also went through a broker.

Canehdianman · 08-16-2013, 01:56 PM

I had a broker look for me and the best he managed was 2.89 as well.

I was speaking to my RBC rep and mentioned that we were renewing. He asked to be able to put together some numbers for me. I said sure, and he came back with 2.79 over 5 years.

I was quite happy.

edit: This was in March 2013.

worth · 08-16-2013, 02:03 PM

My bank offered me Prime -.3%, so 2.7%.

First Lady · 08-16-2013, 02:05 PM

Quote:

Originally Posted by Swayze11

Did interest rates really go up that quick?

My buddy just bought a place and got 5 year fixed at 2.89%.

I will ask him who he went through - he also went through a broker.

That's exactly what we got in May with ScotiaBank. Our regular bank was offering nearly double that.

And didn't budge until it was too late; even then they were still a full percentage point off.

ranchlandsselling · 08-16-2013, 02:33 PM

Best I'm seeing right now is 3.29 and it's going up soon.
ATB just moved from 3.49% to 3.59%

PsYcNeT · 08-16-2013, 02:36 PM

Got 2.89 through TD in May, so I assume there must have been a recent jump.

Rathji · 08-16-2013, 02:40 PM

I also got 2.89 Fixed from TD in May.

Just went to Royal, asked what the best rate they could give me was. Walked into TD and said I was over at Royal and the rate they gave me. They agreed that it was no problem to match that rate.

Rapidfire999 · 08-16-2013, 02:45 PM

I heard of 2.79 a couple months ago but I locked in at 2.89 5 years in June.

I've been hearing that rates have been gradually going up. Should have bought months ago lol

ranchlandsselling · 08-16-2013, 02:45 PM

It's August, have a look at the bond yields since May. If the banks were pricing at 2.89% they were getting a spread of 150 bps +/-. If they kept the same rates they'd be getting 100-110 bps now.

GP_Matt · 08-16-2013, 03:16 PM

I found the best way to go is to figure out what the best possible rate available is and then tell your bank in a nice way that you will accept nothing but their best. If 2.89 is the best then go in and tell them you want that and if they can't give it to you you will go talk to a broker who can get that rate for you. Also, avoid any of the mortgages that offer something extra like cash back or reward points. You are paying for that stuff and they can usually knock points off if you skip it.

It worked for me and I am sitting at a 2.3% variable rate.

burn_this_city · 08-16-2013, 03:17 PM

We got 2.89 fixed for 5 in May.

Sheva #7 · 08-16-2013, 03:40 PM

Thanks for the feedback guys, wow that bond chart is really telling the difference. Looks like the best price to get it was in May and I just missed it. Dang it! Wonder what kind of leverage I can use with the bank/broker to get the "May pricing"??

Deelow · 08-16-2013, 03:40 PM

It's worth pointing out, rate shouldn't be absolutely everything. Even if the bank matches or slightly beats the rate a broker can find you, there are other sings to consider. Portability, pay down windows ect. My experience is that this is where banks typically aren't looking out for your best interests.

sclitheroe · 08-16-2013, 04:37 PM

3.19 was the lowest I found in July on a 5 year fixed, and I ultimately went with 3.29 because I got the lender I wanted.

GP_Matt · 08-16-2013, 04:46 PM

Quote:

Originally Posted by Deelow

It's worth pointing out, rate shouldn't be absolutely everything. Even if the bank matches or slightly beats the rate a broker can find you, there are other sings to consider. Portability, pay down windows ect. My experience is that this is where banks typically aren't looking out for your best interests.

I have no idea who will offer you better terms on this end but it is definitely important. The penalties can be huge if you get the wrong terms.
Also, the flexibility to pay down more is really handy. The standard is (or should be) payments can be increased up to double and a lump sum of 20% can be put down every year.

Whichever way you go you should make sure you fully understand the terms of canceling early. Mine is three months interest but the first mortgage I had wanted something in the range of $15000 in penalties to cancel.

ranchlandsselling · 08-16-2013, 04:48 PM

Quote:

Originally Posted by Sheva #7

Thanks for the feedback guys, wow that bond chart is really telling the difference. Looks like the best price to get it was in May and I just missed it. Dang it! Wonder what kind of leverage I can use with the bank/broker to get the "May pricing"??

Just try not to waste the broker's time, if she/he gets you a better rate then the bank and the bank matches stick with the broker. Leverging someone to do some hard work for you who won't get anything down the line is a bit cruel. The bank guys will keep getting their salary a good broker will put in some time and is actually working for you - not the bank.

WilsonFourTwo · 08-16-2013, 05:16 PM

Quote:

Originally Posted by Sheva #7

I'm looking at doing 5-year fixed and the best rate i got so far was 3.29-3.39%.

I just signed a new mortgage last week (Friday) and dealt with True North Mortgage.

I shopped for about 10 days before hand and couldn't get rates near the 3.29 (5yr fixed) that I got. They could have placed me with ICICI at 3.19% but I preferred to stay with Scotia. They're my primary bank and I was also able to leverage some additional goodies.

Over the last several (call it ten) years I have done the shopping on my own. Incredible hassle and never got the same level of results. Get a broker, no question.

WilsonFourTwo · 08-16-2013, 05:22 PM

Quote:

Originally Posted by Sheva #7

Thanks for the feedback guys, wow that bond chart is really telling the difference. Looks like the best price to get it was in May and I just missed it. Dang it! Wonder what kind of leverage I can use with the bank/broker to get the "May pricing"??

Honestly, one in a million (so you're saying there's a chance....!)

You're one person in a sea of a million mortgages. This is where I found a broker to be useful....bulk power appears to have made a difference.

And don't feel bad. 3.29% is practically free money when you consider the history of mortgage rates. Take advantage and bang away on that principle as fast as humanly possible. You'll thank yourself in 5-10 years when rates return north of 6%.

WilsonFourTwo · 08-16-2013, 05:25 PM

Quote:

Originally Posted by Deelow

It's worth pointing out, rate shouldn't be absolutely everything. Even if the bank matches or slightly beats the rate a broker can find you, there are other sings to consider. Portability, pay down windows ect. My experience is that this is where banks typically aren't looking out for your best interests.

Excellent advice.

Getting a "Good mortgage" or dealing with a "Good lender" is worth a tenth for sure.

Like I mentioned, could have gotten 3.19% with ICICI (Indian National Bank) but a quick Google showed all kinds of customer complaints/problems.