Mortgage Renewal

[Slava]

Originally Posted by DementedReality

someone posted that if you are renewing with your bank, you have to prove you still have an income.

what about those of us who got laid off, will they kick you out of the house even if you are managing to meet all your obligations?

that could be ugly!

Well with Manulife One they don't re-rate you. As long as you don't apply for more credit or anything there shouldn't be anything to worry about.

[DementedReality]

Originally Posted by Slava

Well with Manulife One they don't re-rate you. As long as you don't apply for more credit or anything there shouldn't be anything to worry about.

thanks ... will they audit the income and note if my employer pay is not being deposited?

or as long as i meet my interest obligations, i will be ok?

[Slava]

Originally Posted by DementedReality

thanks ... will they audit the income and note if my employer pay is not being deposited?

or as long as i meet my interest obligations, i will be ok?

No, they don't do that at all. For people who are about to retire as well they can take out a huge Manulife One, and then retire. As long as the interest is either posted to the balance (has room for this) or is paid, then there is no issue.

[albertGQ]

Originally Posted by DementedReality

someone posted that if you are renewing with your bank, you have to prove you still have an income.

what about those of us who got laid off, will they kick you out of the house even if you are managing to meet all your obligations?

that could be ugly!

I have never heard of a bank that requalifies you after your term ends. And I've been in the banking industry for over a decade

[Sample00]

Originally Posted by Bobblehead

I actually worried about that, and asked how I can include Mike in the deal. Here was the response I got back:
So I will be referring anyone interested on to Mike Oxlong, and actually I already forwarded a co-worker who is wondering about renewing early while the rates are low.

I seriously didnt mean to take a shot at ya, Bobblehead. I've been in Mike's position before and it just po'd me to no end getting used. But listen, since Mike's cool with it then who am I to say anything.

[Deegee]

Originally Posted by Frequitude

How does it work if you're in the middle of your 5 year term, but want to lock in if you find a good rate out there? I've been floating at prime-0.8 for two and a half years now, but want to lock in in the next quarter or two.

Can you do that? Can I go somewhere else and say "you can have my business at this great rate you've posted if you buy out my mortgage over there"?

If you're in a closed term there is most likely a prepayment penalty that would be involved. P-0.8 is a really good rate, though.

If you are in an open term then you can change and lock in at any time without penalty.

Sometimes if you move your 1st Mortgage and you have a HELOC as well you need to look at doing something with that too.

For example, person has their mortgage and herc with RBC (for sake of arguing), and has decided to move their mortgage to TD. Well, either the mortgage you are moving will fall to a 2nd Charge position behing the RBC HELOC charge and your rates will stink, or your HELOC mortgage charge will have to be postponed to the new TD charge and your HELOC rate will adjust accordingly as it will fall to a 2nd Charge position.

[Mike Oxlong]

Originally Posted by Frequitude

How does it work if you're in the middle of your 5 year term, but want to lock in if you find a good rate out there? I've been floating at prime-0.8 for two and a half years now, but want to lock in in the next quarter or two.

Can you do that? Can I go somewhere else and say "you can have my business at this great rate you've posted if you buy out my mortgage over there"?

Generally if you lock into a fixed rate with the same bank there is no penalty. They will just let you move to a fixed rate.

If you go with another bank then you will have a payout penalty (unless it is an open mortgage). I have yet to see another bank ever offer to pay your payout penalty in order to get your business. Unfortunately that is something you have to take care of yourself.

[Mike Oxlong]

Originally Posted by Sample00

I feel a bad for Mike Oxlong though.
He got used and didnt profit from it. I dont meant to take a shot at my other CP friend there and I certainly dont mean to stand up for Mike either, its just that a guy who makes his living off mortgage commissions got used. And to use his services for the most part is free.
Having been a mortgage broker,I have seen that too many times and one of the main reasons why I got out of the business.

Thanks for your concern Sample!

As you know this is just part of the biz. Sometimes you get the deals and sometimes you don't. I have even had friends use my rate quotes as leverage against their banks and then still go with their banks. It happens, comes with the territory I guess.

Honestly though if I can help any CP'ers with any advice or get a better rate I am more than happy to. This place has been a goldmine of resources for me as well so it all works out and I am happy to do my part to give back.

Obviously I would prefer to get the business as I do enjoy eating.

Bobblehead did refer a co worker to me like he said, so hopefully if I can help someone out even if they don't go with me they appreciate the help and send referals my way down the road.

All for the greater good of CP!

[Winsor_Pilates]

Originally Posted by fotze

What is the top 4 year fixed rate right now?

4.39%?

RBC is offering 4.24% right now for the projects that I'm selling in Van. Best I've seen.

[Sample00]

Originally Posted by Mike Oxlong

Thanks for your concern Sample!

As you know this is just part of the biz. Sometimes you get the deals and sometimes you don't. I have even had friends use my rate quotes as leverage against their banks and then still go with their banks. It happens, comes with the territory I guess.

Honestly though if I can help any CP'ers with any advice or get a better rate I am more than happy to. This place has been a goldmine of resources for me as well so it all works out and I am happy to do my part to give back.

Obviously I would prefer to get the business as I do enjoy eating.

Bobblehead did refer a co worker to me like he said, so hopefully if I can help someone out even if they don't go with me they appreciate the help and send referals my way down the road.

All for the greater good of CP!

I wish you continued success, Mike. Its a tough racket to be in but ultimately, I think Mortgage Brokers are the better choice in the end.

[Slava]

Originally Posted by Frequitude

How does it work if you're in the middle of your 5 year term, but want to lock in if you find a good rate out there? I've been floating at prime-0.8 for two and a half years now, but want to lock in in the next quarter or two.

Can you do that? Can I go somewhere else and say "you can have my business at this great rate you've posted if you buy out my mortgage over there"?

Just a consideration that you can take for what its worth, but you might want to take your time doing this. There is still a reasonable chance that the BOC cuts rates again before we are all said and done. It would be a shame to lock in now and have a rate cut follow!

[Incinerator]

Originally Posted by Slava

Just a consideration that you can take for what its worth, but you might want to take your time doing this. There is still a reasonable chance that the BOC cuts rates again before we are all said and done. It would be a shame to lock in now and have a rate cut follow!

I hardly think the banks would follow another BOC rate cut even if it happens again. BMO just announced they will raise rates on their LOCs across the board for their existing customers (discretions, not the actual prime, like prime + 1 instead of prime - 1).

Take advantage of the rates now if you can get a good one, this is as good as it's gonna get IMO.

[ken0042]

You also have to consider- how much lower can it possibly go from here? It's not like when rates were ~10% in the 70s and they could have gone either up or down from there.

[photon]

Zero's still a ways away

[Slava]

Originally Posted by Incinerator

I hardly think the banks would follow another BOC rate cut even if it happens again. BMO just announced they will raise rates on their LOCs across the board for their existing customers (discretions, not the actual prime, like prime + 1 instead of prime - 1).

Take advantage of the rates now if you can get a good one, this is as good as it's gonna get IMO.

Why do you think that? I'm sure that if the BOC cuts another 1/2 point than the banks drop at least another quarter, of not matching the cut entirely.

[automaton 3]

Originally Posted by DementedReality

someone posted that if you are renewing with your bank, you have to prove you still have an income.

what about those of us who got laid off, will they kick you out of the house even if you are managing to meet all your obligations?

that could be ugly!

I think the opposite is true - if you move your mortgage elsewhere you will need to be re-approved. Generally your existing bank won't.

[automaton 3]

Originally Posted by Slava

Why do you think that? I'm sure that if the BOC cuts another 1/2 point than the banks drop at least another quarter, of not matching the cut entirely.

I'm with you Slava, I think one more BOC reduction is in the works. Whether the banks pass it along is another story.

[Deegee]

Originally Posted by Incinerator

I hardly think the banks would follow another BOC rate cut even if it happens again. BMO just announced they will raise rates on their LOCs across the board for their existing customers (discretions, not the actual prime, like prime + 1 instead of prime - 1).

Take advantage of the rates now if you can get a good one, this is as good as it's gonna get IMO.

This is partly true at our Credit Union (Mountain View) as we have already seen the indicators following Prime rise as Prime has dropped.

HERC (or HELOC) rates for example have gone from Prime to P+1%, however this is only for new members and pre existing members get to keep their current rates.

[Incinerator]

Originally Posted by Slava

Why do you think that? I'm sure that if the BOC cuts another 1/2 point than the banks drop at least another quarter, of not matching the cut entirely.

Because the banks have already publicly p*ssed & moaned about how their profits are unsustainable with the low rates (they started doing this when the BOC did one of their first major cuts in October). Remember when TD first said they weren't gonna match the full cut and only relented to the media pressure after a week?

Personally my LOC's at prime so I want another cut as bad as the rest of you, but I just don't see it happening. 3% is practically free money, cut it to 2.5% I'd probably jizz in my pants, to borrow from the other thread. lol.

[Slava]

Originally Posted by Incinerator

Because the banks have already publicly p*ssed & moaned about how their profits are unsustainable with the low rates (they started doing this when the BOC did one of their first major cuts in October). Remember when TD first said they weren't gonna match the full cut and only relented to the media pressure after a week?

Personally my LOC's at prime so I want another cut as bad as the rest of you, but I just don't see it happening. 3% is practically free money, cut it to 2.5% I'd probably jizz in my pants, to borrow from the other thread. lol.

I know what you mean, but the banks have built in their profit now. Most of the rates are higher than prime, so to reduce the rates with prime no longer cuts their profit any further. I think that with the economy struggling through the first 1/2 of the year and prime getting cut that the banks will match the cuts...they have been matching as we dropped through the late fall and into January.