Bank of Canada cuts rates again

[Bertuzzied]

Originally Posted by Nufy

Yippee....I just signed for my HELOC at prime.......

What! where? Is it with ATB?

[Wookie]

What's the requirement for getting a HELOC? I'm thinking about getting one to whipe out some other debts/cc/etc.

I can't imagine I have much equity in my place though, how is that calculated?

[psicodude]

Originally Posted by Wookie

What's the requirement for getting a HELOC? I'm thinking about getting one to whipe out some other debts/cc/etc.

I can't imagine I have much equity in my place though, how is that calculated?

I am not an expert like a lot of the posters here are, but when I was looking around at them most banks would give you 80% of the equity you have in your home. Some banks will just use current market prices to estimate your equity, while others will actually have someone come to your home and do it.

You also have to qualify for the HELOC, of course. They look at your income, debts, credit score, etc.

[Eric Vail]

Originally Posted by Nufy

Yippee....I just signed for my HELOC at prime.......

Most banks are only offering HELOCs at prime +1% these days. Who gave it to you at prime?

[Prototype]

Originally Posted by Eric Vail

Most banks are only offering HELOCs at prime +1% these days. Who gave it to you at prime?

I can get you one for less...

[Eric Vail]

Originally Posted by Prototype

I can get you one for less...

I'm listening.....

[Prototype]

For anyone interested in a HELOC at less than Prime + 1%, PM me. I'm sure the MODS wont like this to turn into me selling in this thread, but if you need more information before PMing me, check out the thread I created in the Buy/Sell Forum.

http://forum.calgarypuck.com/showthread.php?t=68140

[jus_sum_guy]

Originally Posted by bomber317

man, what term did you get? that's a pretty good rate to be locked in at.

I'm in at 4.5%

We are on a 4 year term.

But here's the catch...

The mortgage for our 4 houses and 2 businesses are with the same company and has been for the last 22 years... so they cut us a deal.

[Bagor]

Originally Posted by Slava

Usually the penalties to drop the mortgage are either 3 months interest or the interest rate differential. Its worth taking a look though....given that the rates are at historical lows!

Here's what I'm thinking of doing. Worth a try?

Book an appointment with my bank manager (who I don't have the mortgage with).

Walk in: "I need a mortgage"

Him: Sure, how much?

Me: X $ (about 25% to pay on my house)

Him (after a while doing the assessment which will be fine). Looks good.

Discuss new rate and term.

Me: So how much interest would I pay?

Him: X no. of dollars.

Me: ok, I just need to get out of this mortgage which will cost me y no. of dollars.

How about you pay y (penalty) for me. You get a mortgage from me and still make money (x-y) from me. Everyone wins.

Would it work? Nothing to lose?

Him

[Nufy]

A mortgage broker friend of mine got me one through the National Bank.

Actually brokered the deal for us last fall while I was working in the US.

Even my Lawyer asked " How did you get this at Prime ????"

Signed the final papers a few days ago.

I can forward her information if you like. I don't think they are still offering that rate though.

[Wookie]

I think that does happen, competing banks will take out your mortgage for you and just add on the penalty for you. They used to at least.

[Bagor]

Originally Posted by Wookie

I think that does happen, competing banks will take out your mortgage for you and just add on the penalty for you. They used to at least.

I don't want them to add on the penalty.

If they want my business in this time I want them to take on all or at least some of the penalty.

Sure it hits their profit margin but at the end of the day it's still a profit, and they're taking it away from their competitor.

I could just say, yup but my existing lender would do the same for a renegotiated mortgage.

[Bring_Back_Shantz]

Originally Posted by Bagor

I don't want them to add on the penalty.

If they want my business in this time I want them to take on all or at least some of the penalty.

Sure it hits their profit margin but at the end of the day it's still a profit, and they're taking it away from their competitor.

I could just say, yup but my existing lender would do the same for a renegotiated mortgage.

Two things wrong with that.

1) You are already getting a better deal, this new bank is working with you to save what could be a lot of money. No reason they should take on the whole burden.

2) Why would the existing lender renegotiate your mortgage? They've got you locked in already.

[Bagor]

Originally Posted by Bring_Back_Shantz

Two things wrong with that.

1) You are already getting a better deal, this new bank is working with you to save what could be a lot of money. No reason they should take on the whole burden.

2) Why would the existing lender renegotiate your mortgage? They've got you locked in already.

1) Agreed, but hey no harm in trying to get them to pay a bit for the honour of making money of me. Call it spreading the wealth.

As for them working for me. Yes, they would be but getting compensated more than fairly for said work. Some profit is better than no profit. Not to mention some profit is also directly taken from a competitor.

2) I wouldn't be talking to my existing lender.

Need to sit down and do the math. Would be a nice start if we could find our agreement and house info though. My wife decided pre-vacation to hide it in a place where no-one would find it. She was right.

[skins]

Sweet. We're getting possession of our condo in a little over a month. Definitely going with variable rate for the time being.

[Nufy]

Originally Posted by fotze

I try that technique whenever I renew. No one has taken the deal yet. BMo wouldn;t even pay the penalty when I moved to a new house and my original mortgage was with BMO.

Really,

Most times wouldn't a company waive their penalty if you get your new mortgage with them.

Mine did........