Mortgage interest rates back to June levels.

[troutman]

http://www.tdcanadatrust.com/mortgages/select.jsp

Historically, variable-rate mortgages have tended to cost less than fixed-rate mortgages when interest rates are fairly stable.

http://www.hgtv.ca/articles/articled...157&cat=3&by=1

Rather than locking into a fixed rate agreement, investors who choose a variable rate agree to pay the current lending rate, which often changes. “We really try to educate clients, and show them the history of variable versus fixed over the past 15 years,” says Harris. “Historically, you’re better off taking the variable. We set up a strategy with clients, and suggest they set payments at a higher rate in order to build a cushion in case rates go up. In the long run, clients are often able to pay off their mortgage more quickly this way.” But, Harris admits, it’s impossible to tell what the next 15 years will bring in terms of rate fluctuation – so if you can’t stand the uncertainty, it’s better not to gamble.

http://www.verticalads.com/resources...ngMortgage.asp

“Many simply prefer the greater sense of stability that a seven to 10-year fixed rate mortgage can provide in a changing rate market,” says Jim Rawson, regional sales manager, Invis. “Nevertheless, the advantages of a variable rate borrowing strategy are real: over the last 50 years, research shows consumers would have been better off by borrowing at prime rather than at a five-year fixed rate 88 per cent of the time.”

[Bobblehead]

I'm locked in, but coming due shortly.

When this comes up I know it is generally smarter to float.

But then a friend of mine said something that stuck with me. He was on a floating rate, and found himself getting nervous every time the bank rates were announced (this was back when they were announced every Thursday). He said it was worth the stress relief for him just to know exactly how much his mortgage payment was going to be. YMMV

[ken0042]

Originally Posted by troutman

[I]“We really try to educate clients, and show them the history of variable versus fixed over the past 15 years,”

(Note Troutman was quoting somebody else.)

My issue with this; in the last 15 years the rates have continued to go down. When I locked in; I did so at 5.20%. I really cannot see rates going below this; and if they do, then maybe as low as 4%. But there's a lot more that it could go up. Look at rates from the previous 15 years, and you can see a trend of going up.

Basically they are saying that since the worst rates in history, things have gotten better. We exect them to keep getting better.

[DementedReality]

sort of on topic ...

any thoughts, comments or insight into this alternative form of banking offered by Manual Life?

http://www.manulife.ca/canada/mBank.nsf/Public/mone

Manual Life One.

[return to the red]

good topic and at the right time. Our current mortgage is variable and so will our new one, don't ask me why but it will be.

quick question a little off topic though, when you sell your house and negotiate possession further down the road (ie. 2 months) when does the money from the sale of your house transfer to you?

[return to the red]

Originally Posted by fotze

Where are you going to live for 2 months? If at your parents then yes you get the money for that time.

In our house that we live in hence the negotiated possession date two months down the road. You can still technically sell your house but not move out until a later date if you specify date of possession can't you?

sorry for being a nimrod but I sell sprinklers, not houses

[troutman]

Originally Posted by return to the red

good topic and at the right time. Our current mortgage is variable and so will our new one, don't ask me why but it will be.

quick question a little off topic though, when you sell your house and negotiate possession further down the road (ie. 2 months) when does the money from the sale of your house transfer to you?

If you can provide a little bit more info I think I can answer this for you.

[return to the red]

Originally Posted by troutman

If you can provide a little bit more info I think I can answer this for you.

PM sent

[GrrlGoalie33]

When we signed three years ago, we got a sweet deal of 4.85%, if their rates were ever to go below that, we would get the new better rate and the difference in the payment would go directly to principal, if it went above 4.85%, we won't go above.

Sweet deal, too bad we won't get it next time...

[Slava]

Originally Posted by DementedReality

sort of on topic ...

any thoughts, comments or insight into this alternative form of banking offered by Manual Life?

http://www.manulife.ca/canada/mBank.nsf/Public/mone

Manual Life One.

I have a bias here, but quite honestly its a fantastic product! Its a great way to carry your debt and use your incoming funds to your best advantage. If you have specific questions/concerns let me know and I'd be happy to answer them for you.

[DementedReality]

Originally Posted by Slava

I have a bias here, but quite honestly its a fantastic product! Its a great way to carry your debt and use your incoming funds to your best advantage. If you have specific questions/concerns let me know and I'd be happy to answer them for you.

from your previous posts it seems you are educated in this field. if you are using it, it satisifies my curiousty if I was missing something. it seems to make great sense to me.

edit: after reading your message again, i am not sure if you are using it or biased because you work for manuallife. ??

[V]

Huh, I just got two mortgages, both at 5.09%, fixed. 5 year term. Open mortgage. Kick a$$.

[Slava]

Originally Posted by DementedReality

from your previous posts it seems you are educated in this field. if you are using it, it satisifies my curiousty if I was missing something. it seems to make great sense to me.

edit: after reading your message again, i am not sure if you are using it or biased because you work for manuallife. ??

I don't work for Manulife...however Manulife provides these products through financial advisors, which I am.

I use this product personally however; and that is why I recommend this. There are a lot of advantages to this product!

[V]

Originally Posted by DementedReality

sort of on topic ...

any thoughts, comments or insight into this alternative form of banking offered by Manual Life?

http://www.manulife.ca/canada/mBank.nsf/Public/mone

Manual Life One.

It's a fantastic product. I have the same thing, except through a different financial institution.

It really isn't for everyone, though. If you have any difficulty at all with saving money, you might not want it. It's pretty easy to blow however many tens of thousands of dollars you have available.

[Displaced Flames fan]

We got out mortgage almost exactly 4 years ago. It is a 5 yr ARM with a maximum adjustment of 1% per year and the adjustment is based solely on the fluctuation of the prime rate, so it can't just be automatically cranked up each year just because the lender feels like it. The initial rate was 3.75%. It has adjusted to 6% so far. The next to the last adjustment is coming in November and based on what the Fed has done this year it shouldn't be close to that max bump..if it even adjusts at all. So in the end, we'll end up with a rate around 7 at the worst and it could've gone as high as 8.75. Not too bad in my estimation.

There was really very little risk for us in this ARM and it has worked out well for us. We could've afforded a lot more early in the mortgage and I think that's where people get into trouble. Their early rate is that max they can afford and when that adjustment comes they're toast.

[Slava]

Originally Posted by V

It's a fantastic product. I have the same thing, except through a different financial institution.

It really isn't for everyone, though. If you have any difficulty at all with saving money, you might not want it. It's pretty easy to blow however many tens of thousands of dollars you have available.

If you don't mind, I'd be curious to know which product you are using and where you can get it?

[V]

The financial institution is the Christian Credit Union. I have a HELOC/Mortgage. My paycheques are automatically paid into the HELOC, and all of my bills are directly debited out of the HELOC. It's smooth, worry free, and like you said, it puts your money to a little better use.

I guess the 5.09% is misleading, though, as the interest rate is 5.5% with a kickback of ~7% of your interest paid at the end of the year, which if you pop that back into the mortgage, essentially puts the effective interest rate at 5.09%, based on my calculations.

There are a lot of restrictions on who can get a mortgage, or bank account from them, though, so I don't see a whole lot of point in advertising.

[Slava]

Originally Posted by V

The financial institution is the Christian Credit Union. I have a HELOC/Mortgage. My paycheques are automatically paid into the HELOC, and all of my bills are directly debited out of the HELOC. It's smooth, worry free, and like you said, it puts your money to a little better use.

I guess the 5.09% is misleading, though, as the interest rate is 5.5% with a kickback of ~7% of your interest paid at the end of the year, which if you pop that back into the mortgage, essentially puts the effective interest rate at 5.09%, based on my calculations.

There are a lot of restrictions on who can get a mortgage, or bank account from them, though, so I don't see a whole lot of point in advertising.

It sounds similar, although perhaps there are a few subtle differences. The 5.5% is a good rate though. Is that a locked in rate? Are there penalties if you break the mortgage or pay it sooner? Also are there limits on how much you can pay down?

[V]

No, it's an open mortgage, so I can pay as much into it as I want. That's the main reason I got it for my rentals, beyond anything else. I don't want to pay fees for selling my place before the mortgage comes due. Of course, they won't let me get a HELOC with my mortgage on the rentals, just like Manulife. The HELOC only works for the principal dwelling.

The 5.5% is locked in for 5 years, starting this August. Although they say, and my dad can verify after using them for years, that if there is a substantial drop in rates they will renegotiate.

I'd be curious to find out the subtle differences between my system and ManulifeOne. I've looked into both pretty closely, and the only difference I can see is that Manulife will allow you up to 90% of the house value if you pay some CMHC fees. CCU won't.

[Slava]

I am just not familiar with the product that you are using V, otherwise I could try to tell you the differences. Manulife will let you use the Manulife One account for revenue properties though...so that sounds like one in particluar.

Sounds like a good product that you are in though, with the major advantages anyway.