Mortgage Broker

[Mike Oxlong]

Just a quick update on where rates are sitting. They took a fairly big jump a few weeks ago up to the 4.29% range for a 5 year fixed.

However over the last week they have started to drop again, you can get a 5 year for 3.99% again.

Lots of good rates all all term lengths right now.

[Mike Oxlong]

Just another quick update. Rates have dropped again. There are a few lenders offering 3.69% on a 5 year fixed. 120 day rate holds available as well.

If your mortgage is up for renewal soon it's a good idea to lock your rate in. If your looking at buying contact me to get pre approved at we can lock in your rate as well.

[hamburgler]

I just got 5 year fixed closed at 3.55 through Scotiabank. Didn't go through a broker as I have an excellent relationship with my personal banker. Deal funds next week for me. Is this a good rate for the current market? I thought it was amazing.

[ranchlandsselling]

Originally Posted by hamburgler

I just got 5 year fixed closed at 3.55 through Scotiabank. Didn't go through a broker as I have an excellent relationship with my personal banker. Deal funds next week for me. Is this a good rate for the current market? I thought it was amazing.

Pretty good rate, well done! I could have only done a few bps better.

[Robbob]

Question about blending rates. Is there a magic point in the term of the mortgage where the companies are more then happy to blend without makes you jump through hoops? In a couple weeks I will be 2 years into a 5 year mortgage, is this something I should look at now or wait till the half way point (which would be February).

[Cecil Terwilliger]

Originally Posted by hamburgler

I just got 5 year fixed closed at 3.55 through Scotiabank. Didn't go through a broker as I have an excellent relationship with my personal banker. Deal funds next week for me. Is this a good rate for the current market? I thought it was amazing.

ATB is currently offering 3.09 . Just an insane rate. First Calgary is currently offering 3.49.

Both for 5 year fixed. AFAIK those are the best rates around right now.

3.55 certainly isn't bad either.

[bomber317]

Just heard from RBC

2.99 @ 4 year fixed - 120 day rate hold.

[Robbob]

This is why I want to blend my rate if possible. if I can get a blended rate sub 4 I will be extremely happy.

[Cecil Terwilliger]

Originally Posted by bomber317

Just heard from RBC

2.99 @ 4 year fixed - 120 day rate hold.

Do you know if that is advertised anywhere or was it offered to you by a personal banker or a broker?

Their website lists a 4 year fixed at 3.99.

[albertGQ]

Originally Posted by Robbob

This is why I want to blend my rate if possible. if I can get a blended rate sub 4 I will be extremely happy.

My mortgage is with ATB and I tried to blend my rate with their 3.09% rate but they wouldn't allow it

[bomber317]

Originally Posted by Cecil Terwilliger

Do you know if that is advertised anywhere or was it offered to you by a personal banker or a broker?

Their website lists a 4 year fixed at 3.99.

From one of their RBC mortgage specialist. The rate was just announced today.

This is a discounted rate and not a posted rate.

I currently have a 1 year builder rate hold with them, so they update me with rate changes when they occur.

[Robbob]

Originally Posted by albertGQ

My mortgage is with ATB and I tried to blend my rate with their 3.09% rate but they wouldn't allow it

That is what I am thinking but maybe it depends how much term you have left...at least I hope. Worst case they say no.

[Cecil Terwilliger]

It is not unusual for FI's to not allow early renewals.

One option is to ask for a penalty amount. Then judge the possible savings of the 3.09% vs whatever rate you currently have.

If the penalty amount is less than the savings then you can payout the mortgage and basically just apply for a new mtg at the new amount.

Or you can just tell ATB to go #### themselves and go to another FI. With all the competitive rates out there you should get pretty close to 3.09. You'd still have to pay a penalty but you'd also get to stick it to ATB for not letting you early renew.

AFAIK a few Credit Unions will allow early renewals but each bank has their own policy.

[Mike Oxlong]

Quick update on rates. While fixed rates are still dropping and at an incredibly low level, the variable rates are increasing.

RBC led the charge by moving variable rate from Prime less .7 to prime less .55.
The Bank of Canada hasn't changed the overnight rate which is what variable rates are based on, the banks are just decreasing the discount on prime they are giving out.

As I said RBC started things and all the other banks are following suit. There are a few lenders that will hold off for a few days but pretty much everyone will be making the change soon.

The spread between variable and a 5 year fixed is even smaller now.

Fire away with any questions.

[Mike Oxlong]

Some amazingly low rates still out there.

3.09% on a 4 year fixed is a pretty amazing deal right now.

Let me know if I can answer any questions.

[Mike Oxlong]

The discounts on variable rates keep decreasing. Most banks are offering in the range of prime less .2 to .3 at the most now. There are exceptions and some lenders will have specials but for the most part the spread between variable and long term fixed rates is really shrinking. With prime at 3% you are looking at 2.7ish for a variable now.

There is a great deal on a 4 year fixed rate now at 2.99%.

Fixed are looking like the better alternative with the spread between the options so small right now.

As always fire away with questions.

[Mike Oxlong]

Fixed rates appear to be on the rise. Some upward movement from some of the big 5 today indicate all the other lenders will follow soon.

I can usually get 120 day rate holds on today's rates. If you are looking at buying, refinancing or renewing your mortgage anytime soon let me know and we can hold today's rate for you.

Just a friendly reminder - As a broker I work for you and NOT a lender. I have access to over 40 lenders so I find you the best rate and the mortgage options that work for you and your lifestyle. Best of all my services are free to you.

Why go to a bank where you are limited to only their rates and their options?
Work with a professional that has your best interest in mind.

[AFireInside]

I should have done this sooner.

We used Jamie (Mike Oxlong) this summer for our mortgage. Just wanted to say he was great, worked hard for us, and was easy to get in contact with whenever I had questions, which was often lol....

I'm sure there are lots of testimonials in this thread but thought I would throw it out there.

[Mike Oxlong]

Rates are still very low!

5 year fixed currently at 3.39%

4 year fixed rate at 3.09%
I think this is the best deal out there right now. Fantastic rate and you get to lock it in for 4 years.

I can get you 120 day rate holds as well. If you are buying, thinking about refinancing or your mortgage is up for renewal soon let me know.

One other thing to note with these rates - this lender has fantastic prepayment options. They are not restrictive at all and in fact some of the most flexible in the entire industry.It's the best of both worlds.

[Mike Oxlong]

In another thread there was a brief discussion on the difference between going to a bank vs. a broker for your mortgage. I didn't want to hijack that thread but I feel it is an important topic to be discussed so people understand the differences and can make educated financial decisions when purchasing a home.

When you go a bank you are going to deal with what they call a "mortgage specialist" These specialists are not licenced in anyway, they have no formal education or training in mortgages. These "specialists" could have been selling credit cards yesterday and might be a bank teller tomorrow. Most importantly these "specialists" work for the bank. They have the banks best interests in mind not yours.

When you talk to a specialist at a bank you are going to get ONE option. You get that banks rates, and mortgage options, that's it. Your financial goals might not be in line with what that bank is going to offer you. It's like trying to fit a square peg into a round hole sometimes.

So I'm sure you are thinking that you can just go out and shop around yourself for a mortgage from different banks, which of course you could. However not only will it cost you lots of time and leg work but every bank you go to is going to potentially pull your credit bureau which will hurt your credit score. A broker will pull your credit bureau once and can shop it to all of the lenders.

Mortgage brokers in Alberta are licenced and are required to go through an educational course in order to obtain that licence. Now I don't want to make it sound like they are getting PHD's or anything but there is an educational process that is required. Additionally to obtain your AMP designation continuing education is required every year.

Mortgage brokers have access to a whole bunch of lenders. I have access to about 40 different lenders and some private lenders as well.

Most important thing is that I work for YOU. I don't work for a bank, I don't have an allegiance to any bank. My business is based on happy clients and referrals. It is in my best interest to make sure you are happy with your experience which means getting you the best rate possible as well as getting you the mortgage options that work for you. Because I have access to so many lenders I am able to do that unlike a bank.

A good broker is going to offer you the best rate available right off the bat. There is no need for negotiation with them or haggling. They are working for you.

I had a client recently who's mortgage was up for renewal. He contacted me and let me know what his current bank had offered him as a renewal rate. I was able to beat that rate quite easily, when he went back to his bank to let them know, all of a sudden they were able to drop their rate to match. Why wouldn't that bank just offer their best rate to him right off the bat? He just finished a 5 year term with them where he paid them THOUSANDS of dollars in interest. Yet they still tried sucking as much as they possible could from him.

If there is one thing I want anyone reading this to remember is to NEVER EVER sign your renewal notice from your bank. It can save you thousands of dollars by speaking to a broker and finding out the best available rate at their time of renewal. 9 times out of 10 your current lender is going to offer you a higher rate to try and make as much as they can from you. They are hoping you are just going to sign and not shop around. Unfortunately a lot of people do sign and pay way more than they need to.

Just please use that broker if they offer you a better rate! If your lender comes back and says they will match, why go back to them after they just tried screwing you?

Oh one other important thing to remember about using a broker.......our services are FREE. It doesn't cost you anything.

As always please feel free to fire away with any questions. I am happy to act as a resource on this board to help people make informed decisions on the biggest financial decisions on their lives.