*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[blankall]

Keep in mind that you can negotiate with your existing bank about the rate they provide. If another bank is offering you "X" rate, just bring that to the attention of your current provider. If they're smart, they'll match. The big banks aren't going to match 100% every low level lender, but amongst offers from other big banks, they'll typically match or get very close.

[Fuzz]

In my experience the first reaction presenting other rates at RBC is "those products aren't comparable" without them looking at any details. I think that probably stops a lot of people, but you just keep at it. "I think you can do better than that." Because you are doing this a few months ahead with lots of time(right, right?), it's easy to walk out and tell them to let you know when they've talked to a mortgage manager and gotten a better offer. I always won eventually. Plus if rates are dropping, and you if get a decent offer, once rates drop you can come back and pile that rate drop onto the previous offer, and they kinda feel stuck with it.

[blankall]

Originally Posted by Fuzz

In my experience the first reaction presenting other rates at RBC is "those products aren't comparable" without them looking at any details. I think that probably stops a lot of people, but you just keep at it. "I think you can do better than that." Because you are doing this a few months ahead with lots of time(right, right?), it's easy to walk out and tell them to let you know when they've talked to a mortgage manager and gotten a better offer. I always won eventually. Plus if rates are dropping, and you if get a decent offer, once rates drop you can come back and pile that rate drop onto the previous offer, and they kinda feel stuck with it.

That's a good point. Always start negotiations ahead of time. I'd say at the 6 month mark. If things are tight, they will purposely delay until you have to re-sign with them or go through some cluster @#$@# to move the mortgage last minute.

[bizaro86]

Originally Posted by MillerTime GFG

Yes that is correct. If you're a new mortgage customer to Scotia - they will offer two products. Standard mortgage with a slightly higher rate, or a "mortgage +" product that comes with a lower rate, but you need to open a Scotia chequing account for mortgage payments + one other product. Many banks do this now.

Isn't tied selling of products illegal for the banks?

[nik-]

Originally Posted by bizaro86

Isn't tied selling of products illegal for the banks?

So is money laundering for cartels, but they seem to do that too.

[Engine09]

I'm a little over a month away from my mortgage renewal date and the best option I've found so far is to sign for a 5 year variable at 5.0% (Prime -0.95%). Figure I'll ride the lightning this time and hope for a cut in Dec and hopefully again in early 2025.

I've only had one broker come back to me to let me know their rate has increased a bit after the election results.

Anyone else been looking as well?

[mrkajz44]

My mortgage renews next week and I've gone with 4.29% fixed for 5 years. We plan to have the house fully paid off over those 5 years with some extra payments along the way.

I've accepted that the likely outcome is variable over 5 years probably works out better, but I valued the certainty of the rate over the rest of my mortgage much higher and it eliminates any stress relating to rate changes. The fact that we're nearing the end of the mortgage as well helped minimize the impacts of the rate.

[The Fisher Account]

Originally Posted by mrkajz44

My mortgage renews next week and I've gone with 4.29% fixed for 5 years. We plan to have the house fully paid off over those 5 years with some extra payments along the way.

I've accepted that the likely outcome is variable over 5 years probably works out better, but I valued the certainty of the rate over the rest of my mortgage much higher and it eliminates any stress relating to rate changes. The fact that we're nearing the end of the mortgage as well helped minimize the impacts of the rate.

Congrats! Can't imagine what a great feeling that would be to pay off your house!

[blankall]

Originally Posted by mrkajz44

My mortgage renews next week and I've gone with 4.29% fixed for 5 years. We plan to have the house fully paid off over those 5 years with some extra payments along the way.

I've accepted that the likely outcome is variable over 5 years probably works out better, but I valued the certainty of the rate over the rest of my mortgage much higher and it eliminates any stress relating to rate changes. The fact that we're nearing the end of the mortgage as well helped minimize the impacts of the rate.

Lol. If you're actually paying off the mortgage in 5 years, having a 1% difference on the interest rate is going to be pretty inconsequential. You are likely coming out ahead too as your balance now is going to be considerably higher than your balance later, when the interest rates are lower. So you have more incentive to go with the lowest rate now.

Congrats on living the dream!

[blankall]

Originally Posted by Engine09

I'm a little over a month away from my mortgage renewal date and the best option I've found so far is to sign for a 5 year variable at 5.0% (Prime -0.95%). Figure I'll ride the lightning this time and hope for a cut in Dec and hopefully again in early 2025.

I've only had one broker come back to me to let me know their rate has increased a bit after the election results.

Anyone else been looking as well?

Variable at 5% is a great deal right now IMO. You should almost certainly be below current fixed rates within 3ish BoC interest rate evaluations.

Prime -.95% is a solid deal. Much better than any posted rates from the banks.

[Engine09]

That's what I'm hoping for, I've been fixed for the past 10 years but I'll risk it. If I'm really close to 4% by spring next year I'll be happy. Alright, I feel better about the 5.0% and will likely sign off next week.

I was told with this variable I can lock in to a fixed rate anytime I want, I asked and will follow up but didn't get a detailed answer. What is the "penalty" when you lock in? Is there a fee you need to pay that they calculate using the remainder of your term?

[Sliver]

Originally Posted by mrkajz44

My mortgage renews next week and I've gone with 4.29% fixed for 5 years. We plan to have the house fully paid off over those 5 years with some extra payments along the way.

I've accepted that the likely outcome is variable over 5 years probably works out better, but I valued the certainty of the rate over the rest of my mortgage much higher and it eliminates any stress relating to rate changes. The fact that we're nearing the end of the mortgage as well helped minimize the impacts of the rate.

This is the strategy I would do in your shoes, too. 4.29% is good and risk free. Who knows WTF is going to happen over the next half decade. Things may go lower, but there is a hell of a lot more runway for them to go up. Lock = peaceful nights' sleep IMO.

[CroFlames]

Originally Posted by Sliver

This is the strategy I would do in your shoes, too. 4.29% is good and risk free. Who knows WTF is going to happen over the next half decade. Things may go lower, but there is a hell of a lot more runway for them to go up. Lock = peaceful nights' sleep IMO.

Especially if you are tracking to pay that bitch off in 5 years. What a feeling.

[Sliver]

Once he pays it off he should throw a big party for us.

[Winsor_Pilates]

Originally Posted by Sliver

Once he pays it off he should throw a big party for us.

At his house; which he'll then have to refinance to pay for party damage repairs.

[Sylvanfan]

Originally Posted by mrkajz44

My mortgage renews next week and I've gone with 4.29% fixed for 5 years. We plan to have the house fully paid off over those 5 years with some extra payments along the way.

I've accepted that the likely outcome is variable over 5 years probably works out better, but I valued the certainty of the rate over the rest of my mortgage much higher and it eliminates any stress relating to rate changes. The fact that we're nearing the end of the mortgage as well helped minimize the impacts of the rate.

Is your remaining Amortization 5 years? If you are in a position where you can pay it off in 5 years, the interest rate won't have a big impact on total cost. Although if its a half point on a 10 year Amortization it would have a bigger effect. I would probably do the same in your shoes as you can set a plan and execute it. Doing that will probably save you more in the long run than trying to maneuver around every rate move.

[Sylvanfan]

Originally Posted by Winsor_Pilates

At his house; which he'll then have to refinance to pay for party damage repairs.

Hey if he can redo the floor plan to have like 10 extra bedrooms it might create a new new revenue streams that easily cover the renovation costs. Free Demo work sounds like a plan.

[Johnny199r]

.50 bps cut looking increasingly likely for Dec 11.

CAD is down to .70 USD and predicted to keep falling. Considering we import quite a bit in winter (ie food), it will be interesting to see how prices rise.

On the bright side, people will be happy to buy homes at higher prices they can't afford again.

[chemgear]

Originally Posted by Johnny199r

.50 bps cut looking increasingly likely for Dec 11.

CAD is down to .70 USD and predicted to keep falling. Considering we import quite a bit in winter (ie food), it will be interesting to see how prices rise.

On the bright side, people will be happy to buy homes prices they can't afford again.

"The Plan" is working!

https://twitter.com/user/status/1831349959456678056

[bluejays]

Politicians are painful to listen to. All about ego stroking and winning votes with empty words.