I'm a first time home buyer... I need to ask you anything - Page 3 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

albertGQ · 04-07-2009, 01:11 PM

Quote:

Originally Posted by Jayems

Ok. Whats the difference between a variable closed and variable open?

Total rook, sorry.

How much you're allowed to prepay

Open you can pay off the mortgage at anytime with no penalties

Closed, you can pay off a certain percentage. This usually ranges between 10% and 20% per calender year

Jayems · 04-07-2009, 01:12 PM

So when she said 3.3% for 5 years.... ? Maybe she misunderstood my question.

Mike Oxlong · 04-07-2009, 01:22 PM

Wow I missed whole bunch of excitement in this thread this morning.

The 3.3% year rate she is offering you is for a closed variable
The rate will float as Prime does and there will be a penalty to get out of it.

The open variable will again float as prime does but it is a totally open mortgage so you can get out of it at anytime with no payout penalties at all.

The fact she offered you 4.5% on a 5 year fixed should raise LOTS of red flags right there. You should be able to get around 3.95 to 4.05% right now depending on your situation. RBC's mortgage specialist are paid on commision from RBC. The higher the rate you get the more they get paid.

Albert and Boblobla - You'll be getting good rates! 3.3% fixed is a fantasy right now though.

albertGQ · 04-07-2009, 01:25 PM

Quote:

Originally Posted by Mike Oxlong

Albert and Boblobla - You'll be getting good rates! 3.3% fixed is a fantasy right now though.

Yeah, I know rates are good right now so I'm not too worried. I almost jizzed my pants though when I thought Jayems got 3.3% on fixed.

Jayems · 04-07-2009, 01:28 PM

Quote:

Originally Posted by Mike Oxlong

Wow I missed whole bunch of excitement in this thread this morning.

The 3.3% year rate she is offering you is for a closed variable
The rate will float as Prime does and there will be a penalty to get out of it.

The open variable will again float as prime does but it is a totally open mortgage so you can get out of it at anytime with no payout penalties at all.

The fact she offered you 4.5% on a 5 year fixed should raise LOTS of red flags right there. You should be able to get around 3.95 to 4.05% right now depending on your situation. RBC's mortgage specialist are paid on commision from RBC. The higher the rate you get the more they get paid.

Albert and Boblobla - You'll be getting good rates! 3.3% fixed is a fantasy right now though.

hmm... maybe she said 4.05 and I misheard. I'll have some questions next time we talk, however

Jedi Ninja · 04-07-2009, 01:54 PM

Quote:

Originally Posted by Jayems

hmm... maybe she said 4.05 and I misheard. I'll have some questions next time we talk, however

I hope so, because they are advertising 4.15 right now on a 5 year fixed. AMA is offering 3.95. A mortgage broker should be able to do 3.95 or better.

Personally, Would go for the 5-fixed right now. I can't see variable going much below where it is now.

Jayems · 04-07-2009, 02:15 PM

Also, Oxlong has been informed of my somewhat unique predicament that is causing a bit of grief right now. Its a long story, but is why we're only dealing with 1 person at the current time. Just gauging the market and once its all settled (my situation), we will probably hire a broker.

Mike Oxlong · 04-07-2009, 02:30 PM

Quote:

Originally Posted by Jayems

Also, Oxlong has been informed of my somewhat unique predicament that is causing a bit of grief right now. Its a long story, but is why we're only dealing with 1 person at the current time. Just gauging the market and once its all settled (my situation), we will probably hire a broker.

I've looked into it a bit for you already and I think there are ways around it.

Don't hesitate to ask me any questions that come up along the way.

AaronSJ · 04-07-2009, 03:38 PM

I'm a first-time home buyer and was approved today for 3.95% on a 5-year fixed from PC Financial (the "Fresh Cut" mortgage... so a step up from the "no frills" mortgage). We're looking within Toronto and things are still high priced, but at least the bidding wars have stopped....

flambers · 04-07-2009, 03:50 PM

Once you get past the Realitor stage and you have spoken with a bank....

If you are building a new house be really carefull with the contract (i.e. make sure everything is written down... all of the upgrades etc..).

If you are buying an older house make sure you get it inspected no matter how nice the house looks (i.e. Windows are a problem in Calgary, Roofing etc....).

The other key element make sure you know what Schools are in your area, there are communities in Calgary that do not have a public or Catholic school. This means the Kids are designated to other areas (which is a major main).

I would also echo the South end of the City, I live in Lake Sundance and work in the North. My drive is no different than a person driving from the North West going to the same location.

evilcougar · 04-07-2009, 05:17 PM

just as sort of another side note as everything everyone has told you is great advice so far....don't forget about property taxes. make sure you pay attention to what they are and what the city asessed value is so that you're not paying a ridiculous amount. and also you will need to get set up on TIPS which is easy.
also, for home insurance (just as a recommendation) TD meloche monnex is awesome. they offer discounts for various things such as working for certain companies or going to school at certain universities etc. we have both cars and home insurance thru them, we have a discount b/c of where i work and we pay just shy of $100 per month.

Jedi Ninja · 04-07-2009, 09:54 PM

Quote:

Originally Posted by flambers

Once you get past the Realitor stage and you have spoken with a bank....

If you are building a new house be really carefull with the contract (i.e. make sure everything is written down... all of the upgrades etc..).

If you are buying an older house make sure you get it inspected no matter how nice the house looks (i.e. Windows are a problem in Calgary, Roofing etc....).

The other key element make sure you know what Schools are in your area, there are communities in Calgary that do not have a public or Catholic school. This means the Kids are designated to other areas (which is a major main).

I would also echo the South end of the City, I live in Lake Sundance and work in the North. My drive is no different than a person driving from the North West going to the same location.

Just to echo this, this is huge. If you don't have kids yet, you may not have thought about this yet, but schools can play a big role in the value of your property even if you don't have kids yourself.

This, BTW, is something you may want to look closely at if you are considering Cougar Ridge. I believe those kids get bussed to Wildwood, which isn't an awful school, but it's not great either. (Ranked 409 of 713 by the Fraser Institute). FYI, this isn't a knock against the teachers at Wildwood, but is more a reflection of the demographics of the student there.

Not sure what the situation in Tuscany is.

http://www.fraserinstitute.org/repor...ce/alberta.htm

Boblobla · 04-08-2009, 07:30 AM

Quote:

Originally Posted by Mike Oxlong

Albert and Boblobla - You'll be getting good rates! 3.3% fixed is a fantasy right now though.

I know, I am not worried, I was just messin' around

GrrlGoalie33 · 04-08-2009, 09:35 AM

So I don't want to completely derail this thread, but we are thinking of selling our home and buying a new home. I thought some of the things to look out for might be similar.

We would be selling in the NE and buying a spec home in Evanston (NW).

Any advice?

troutman · 04-08-2009, 09:41 AM

Quote:

Originally Posted by Frankster

So I don't want to completely derail this thread, but we are thinking of selling our home and buying a new home. I thought some of the things to look out for might be similar.

We would be selling in the NE and buying a spec home in Evanston (NW).

Any advice?

Get yourself a good realtor that understands your needs. A realtor should be willing to give you a discount on the sale commissions if they are also representing you on your purchase.

Make sure your RPR is up-to-date on your sale property.

Jayems · 04-08-2009, 01:22 PM

Oxlong, the situation has been resolved. I'll contact you here in the next few days.

Jedi Ninja · 04-08-2009, 01:52 PM

Quote:

Originally Posted by Jayems

Oxlong, the situation has been resolved. I'll contact you here in the next few days.

That situation you were talking about, did the resolution involve taking someone for a ride on Tony's boat?

Winsor_Pilates · 04-08-2009, 01:59 PM

3.95% is the best 5 year fixed I'm seeing right now. Anyone seen less?
If you can get that rate, and want fixed, you're gold!

burn_this_city · 04-08-2009, 02:05 PM

Wait 6-8 months to buy.. It might be the smartest financial decision you'll make. Housing prices are continuing to tumble, and it takes a loooong time to pay off the amount of money they'll drop in the next year.

Jedi Ninja · 04-08-2009, 02:35 PM

Quote:

Originally Posted by burn_this_city

Wait 6-8 months to buy.. It might be the smartest financial decision you'll make. Housing prices are continuing to tumble, and it takes a loooong time to pay off the amount of money they'll drop in the next year.

I agree that waiting may be a good idea, but you'll probably need to wait a lot longer than 6 months as the market has seen a fairly strong recovery since January and I think you probably won't see any further price declines until the fall.