*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[NinePack]

Originally Posted by Reggie28

Did you end up locking in for 5 years at that rate? I have to refinance, they offered me prime -.5%, hoping I can grind them down to -.75% if I chose variable. Did you inquire about variable? Curious what discounts lenders are offering.

This is with National Bank, it gets tricky because it is partitioned and the original portion (prime -.99%) doesn’t expire for another 18 months.

I did not, I am discussing it again. I am hoping there might be another drop before I commit. I think there is another announcement in June?

[blankall]

Originally Posted by Engine09

CIBC gave me prime -0.95% in Dec, variable. I'm sitting at 4.00% right now.

That's an awesome rate. I think we should see another .5-1.0% drop by the end of the year. There's a chance you could be bellow 3% by the end of the year.

[blankall]

Originally Posted by NinePack

I did not, I am discussing it again. I am hoping there might be another drop before I commit. I think there is another announcement in June?

June 4 and July 30.

https://www.bankofcanada.ca/core-fun...interest-rate/

[DoubleK]

Originally Posted by NinePack

I did not, I am discussing it again. I am hoping there might be another drop before I commit. I think there is another announcement in June?

If the BoC cuts and the Fed doesn't (I don't think they can), that will be good for your mortgage and bad for the loonie.

[CorsiHockeyLeague]

Originally Posted by blankall

That's an awesome rate. I think we should see another .5-1.0% drop by the end of the year. There's a chance you could be bellow 3% by the end of the year.

That would be great... I desperately need to get a fixed rate in the 3s, preferably 5 years or hell, even longer (although that seems unlikely).

[Iggy_12]

Originally Posted by blankall

That's an awesome rate. I think we should see another .5-1.0% drop by the end of the year. There's a chance you could be bellow 3% by the end of the year.

Possibly dumb question, first time on a variable mortgage signed a 5 year 3.97 in April

How often does the rate actually change and how fast do you see it on your banking? Is it immediate or does it take some time to reflect. Ive always been fixed, I just know it hasn't changed from the 3.97 when i originally renewed

[Muta]

You'll see the effect right on your next payment after the rate is announced. My payments are the 1st of every month, so the new rate is always reflected then on my statement.

[fundmark19]

Originally Posted by CorsiHockeyLeague

That would be great... I desperately need to get a fixed rate in the 3s, preferably 5 years or hell, even longer (although that seems unlikely).

Remember just because variable rates drop doesn’t mean fixed rates follow. Fixed rates are tied to the bond yields which have been slowly ticking up the last month. Economists think 4% is right around the floor for fixed rates this cycle unless a major event happens that changes things.

[Engine09]

Originally Posted by blankall

That's an awesome rate. I think we should see another .5-1.0% drop by the end of the year. There's a chance you could be bellow 3% by the end of the year.

I'm ok with it, really had to fight with them to get that %. I threatened to walk away twice and had to annoy the hell of my broker to get answers, they take their time so you'll get more worried as the renewal date approaches. These guys are weasels, don't be afraid to go back at them.

I was always fixed before and never knew the difference between variable and adjustable, just in case anyone else is reading and wondering. Variable: your payment stays the same but the principle & interest ratio changes and therefore your amortization period changes. Adjustable: your monthly mortgage payment amount changes.

[Knut]

Not looking forward to giving up my 1.67% Fixed rate Mortgage in the Fall. Man that was a nice 5 years

[DoubleF]

Originally Posted by Engine09

I'm ok with it, really had to fight with them to get that %. I threatened to walk away twice and had to annoy the hell of my broker to get answers, they take their time so you'll get more worried as the renewal date approaches. These guys are weasels, don't be afraid to go back at them.

I was always fixed before and never knew the difference between variable and adjustable, just in case anyone else is reading and wondering. Variable: your payment stays the same but the principle & interest ratio changes and therefore your amortization period changes. Adjustable: your monthly mortgage payment amount changes.

Prime -0.95% is solid. Mine is -0.85%.

I'm planning on chatting with the bank advisor and looking into converting to a fixed rate in June/July ish based on his recommendations last year. He's been quite honest, so I trust his suggestion. He already advised against a few approaches and has been accurate in those to my advantage. I'll give him the benefit of the doubt. I wonder if he'll tell me to revisit it in Aug/Sept after more rate adjustments or just jump into a fixed around June/July ish.

Rates could keep going down, but peace of mind depending on what he thinks the odds/risks are are also worth it. A full percentage point is going to be <$5K a year for me and if I bet wrong, I'm most likely dealing with an overall difference of <1% for the next 3-5 years anyways for fixed vs variable at worst.

[NinePack]

I just received an email, still 3.74% 5year, 3 year is 3.94%

And 5 year variable is prime -.85

I am going to wait till June 4th, still not sure what to do, I always like my fixed rate though.

[lazypucker]

Remember that the Bank of Canada prime rate is NOT your bank's prime rate. Usually your financial institution's prime rate is like 2% higher than the BoC prime rate...

[Izzle]

Usually like this...

BoC overnight rate = 2.75%

To get your bank prime rate add 2.2%, which makes it 4.95%

Your variable mortgage rate is the bank prime rate less 0.85%. in this case it would be 4.10%.

[Reggie28]

I didn't specify, but are the rates of Prime -0.75% to -1.00% for CHMC insured primary residences?

My banker would not move from Prime -0.5% because the property is a rental and is not CMHC insured, so it has a higher risk profile. She also said the big banks are tightening the discounts because they are expecting Prime to fall.

Maybe the discount tightening is true or maybe I was just out maneuvered in the negotiations.

[You Need a Thneed]

Originally Posted by Knut

Not looking forward to giving up my 1.67% Fixed rate Mortgage in the Fall. Man that was a nice 5 years

Yup, I am so glad I locked in at 3.2% 3+ years ago. If I had been a little bit more on the draw, I could have locked in at 2.6%.

[Sylvanfan]

BOC held the overnight rate at 2.75% again.

Sounds like future cuts are a possibility. But still unknown exactly what the impacts of "TACO" will be.

[Erick Estrada]

Originally Posted by Knut

Not looking forward to giving up my 1.67% Fixed rate Mortgage in the Fall. Man that was a nice 5 years

I'm in exactly the same predicament.