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View Poll Results: What are you doing with your mortgage?
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Lock in a fixed rate
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19 |
54.29% |
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Stick with a floating rate
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14 |
40.00% |
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Get on of those Hybrid mortgages with a little of both
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2 |
5.71% |
08-21-2007, 11:46 AM
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#1
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Franchise Player
Join Date: Apr 2003
Location: 30 minutes from the Red Mile
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Mortgage interest rates back to June levels.
Just a heads up for those who may want to purchase their next home in the near future, interest rates have retreated back to June levels, 5.69% for 5 yr closed as lowest available through brokers. Might wanna go lock it in now if you're buying in the next 3 months. Variables also look pretty attractive at Prime - 0.9% (5.35%  ) for a full 5 year term!
Last edited by Incinerator; 08-21-2007 at 11:59 AM.
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08-21-2007, 11:49 AM
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#2
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Sleazy Banker
Join Date: Oct 2001
Location: Cold Lake Alberta Canada
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nm double post
Last edited by Sample00; 08-21-2007 at 11:54 AM.
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08-21-2007, 11:50 AM
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#3
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Sleazy Banker
Join Date: Oct 2001
Location: Cold Lake Alberta Canada
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recently bought a home and took the variable rate.
going to keep an eye on them and see where they go.
thanks to fwd for helping us out!
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08-21-2007, 12:08 PM
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#4
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Franchise Player
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Did the bank rate go down or just most bank's mortgage rates?
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08-21-2007, 12:12 PM
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#5
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The new goggles also do nothing.
Join Date: Oct 2001
Location: Calgary
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Crap, I just signed some mortgage documents last night! Time to call the broker...
__________________
Uncertainty is an uncomfortable position.
But certainty is an absurd one.
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08-21-2007, 01:01 PM
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#6
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Franchise Player
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Quote:
Originally Posted by fotze
What is the lowest 5yr fixed rate going?
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http://www.globeinvestor.com/servlet...rtgage_closed_
this is just published rates; does not include special promotions the lenders may have
Last edited by Canada 02; 08-21-2007 at 01:03 PM.
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08-21-2007, 01:17 PM
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#7
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Playboy Mansion Poolboy
Join Date: Apr 2004
Location: Close enough to make a beer run during a TV timeout
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Quote:
Originally Posted by fotze
What is the lowest 5yr fixed rate going?
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When mine came up for renewal I looked around, and the two lowest places were ING and then just behind them Bridgewater.
However with the way I was recently dealt with by Bridgewater, I likely won't be going back when my mortgage comes up for renewal in 4.5 years.
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08-21-2007, 01:27 PM
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#8
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Sleazy Banker
Join Date: Oct 2001
Location: Cold Lake Alberta Canada
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so, whats the concensus, long term lock in or variable rate?
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08-21-2007, 01:32 PM
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#9
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Crash and Bang Winger
Join Date: Mar 2006
Location: Beltline
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Quote:
Originally Posted by fotze
Those look like those terrible ratres that they advertise but yopu can actually get 1-2 % better. I am just curious what that REAL rate is.
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Some of the small institutions post their low rate and don't negotiate. So, the lowest rates on that chart are real. ICICI Bank Canada has the lowest 5-year at 5.75, and there are eleven banks that are between 5.76 & 5.86. You probably can't do much better than that.
James.
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08-21-2007, 01:32 PM
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#10
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Playboy Mansion Poolboy
Join Date: Apr 2004
Location: Close enough to make a beer run during a TV timeout
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Quote:
Originally Posted by Sample00
so, whats the concensus, long term lock in or variable rate?
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Poll added! 
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08-21-2007, 01:41 PM
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#11
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Sleazy Banker
Join Date: Oct 2001
Location: Cold Lake Alberta Canada
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Quote:
Originally Posted by ken0042
Poll added! |
Ken, you are just the man!
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08-21-2007, 01:55 PM
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#12
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#1 Goaltender
Join Date: Mar 2004
Location: Calgary...Alberta, Canada
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I locked in about 18 months ago just because I didn't like getting letters every few weeks saying "Your mortgage rate has changed..."
I've heard that you save money over the long run with variable but the peace of mind until 2011 is worth something to me as well.
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08-21-2007, 01:57 PM
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#13
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Powerplay Quarterback
Join Date: Feb 2007
Location: Calgary
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I don't have the source but a few years ago when I was choosing my mortgage I was told that in the last 50 years there has never been a 5 year stretch where locking in out performed floating... ... not sure about the accuracy of that statement but I went with and thats how I plan to stay for now...
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08-21-2007, 01:58 PM
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#14
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Sleazy Banker
Join Date: Oct 2001
Location: Cold Lake Alberta Canada
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Quote:
Originally Posted by fotze
The poll depends, are rates going to go up or down in the future, that will influence my decision.
Sample, rest assured, I went with fixed which means variable will drop way down and save you tonnes of money, I always choose wrong.
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thats great, Fotze, I am happy to take advantage of your wrong doings!
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08-21-2007, 02:07 PM
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#15
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Franchise Player
Join Date: Apr 2003
Location: 30 minutes from the Red Mile
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Quote:
Originally Posted by fotze
What is the lowest 5yr fixed rate going?
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My broker just sent me a rate sheet this morning at 5.69% Five Year FIXED. YMMV at other brokers/institutions.
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08-21-2007, 02:38 PM
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#16
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Franchise Player
Join Date: Dec 2006
Location: Calgary, Alberta
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I stick with the floating rate. The day that the rates drop I want my reduction! The long term average prime rate in Canada 7.64%....so we are still in low rate territory as far as I'm concerned!
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08-21-2007, 02:53 PM
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#17
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Scoring Winger
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Quote:
Originally Posted by MaDMaN_26
I don't have the source but a few years ago when I was choosing my mortgage I was told that in the last 50 years there has never been a 5 year stretch where locking in out performed floating... ... not sure about the accuracy of that statement but I went with and thats how I plan to stay for now...
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It's inaccurate, though it is a good bet. Here is a reference to a study that suggests 88% of the time you are better off floating.
http://manulife.com/corporate/corpor...ada041602.html
Quote:
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The study, commissioned by Manulife Financial last year, is even more relevant today as interest rates appear poised to rise. Authored by Dr. Moshe Milevsky, Associate Professor of Finance at York University’s Schulich School of Business, the study compared the cost of using prime versus five-year fixed rates to finance a mortgage. The report shows the benefit of a floating strategy and concludes that 88.6 per cent of the time during the past 50 years, consumers would have saved more by borrowing at prime versus a five-year fixed rate. It calculates that on average, Canadians could have saved about $22,000 in interest payments on a $100,000 mortgage amortized over 15 years.
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08-21-2007, 02:53 PM
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#18
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Franchise Player
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Quote:
Originally Posted by Slava
I stick with the floating rate. The day that the rates drop I want my reduction! The long term average prime rate in Canada 7.64%....so we are still in low rate territory as far as I'm concerned!
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So if you think that rates will go up towards the long term average, why wouldn't you lock in now?
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08-21-2007, 02:54 PM
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#19
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The new goggles also do nothing.
Join Date: Oct 2001
Location: Calgary
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Crap, I can't lower my rate to the new one.. I'd have to delay closing by a week, and I can't do that or I'd probably lose the house.
Oh well, I was prepared to pay 7.25% on this property so 5.9% is still ok.
__________________
Uncertainty is an uncomfortable position.
But certainty is an absurd one.
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08-21-2007, 03:05 PM
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#20
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Franchise Player
Join Date: Dec 2006
Location: Calgary, Alberta
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Quote:
Originally Posted by albertGQ
So if you think that rates will go up towards the long term average, why wouldn't you lock in now?
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Well I think that rates are going to drop before they go up. Plus, as I've mentioned in other threads I'm writing off a portion of that interest and its not too painful at 6.25%.
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