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Old 02-04-2014, 02:33 PM   #1
Travis Munroe
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Default 3.19 interest rate for 5 years (vs 3.39 most are offering)

My mortgage broker contacted me today to inform me of a 3.19% interest rate over 5 years he can lock in for 90 days.
Even if there is a chance you might buy something, I would suggest getting this rate locked in. It takes very little time to do so!

message/email me if you want more information!
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Old 02-04-2014, 03:09 PM   #2
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I just got a mortgage not to long ago of prime minus .4%. You should tell your broker that he can do better!!!

Edited because I thought it was prime minus .26% ,when in fact it is prime minus .4%
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Old 02-04-2014, 03:25 PM   #3
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Originally Posted by Sinny Darino View Post
I just got a mortgage not to long ago of prime minus .4%. You should tell your broker that he can do better!!!

Edited because I thought it was prime minus .26% ,when in fact it is prime minus .4%
3.19 is a super 5 year fixed rate, anything tied to prime is variable rate, totally different ball game.
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Old 02-04-2014, 03:47 PM   #4
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Originally Posted by Sinny Darino View Post
I just got a mortgage not to long ago of prime minus .4%. You should tell your broker that he can do better!!!

Edited because I thought it was prime minus .26% ,when in fact it is prime minus .4%
You can get P-0.45% now & even P-0.50% in some cases

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Old 02-04-2014, 03:58 PM   #5
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We are locked in at 2.6%, I was just saying it was Prime minus .4%!!!
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Old 02-04-2014, 04:18 PM   #6
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Originally Posted by Sinny Darino View Post
We are locked in at 2.6%, I was just saying it was Prime minus .4%!!!
I really doubt you're locked in at 2.6%. When you lock in, you would be locked into whatever the current fixed rates are, which are currently between 3.09% - 3.39% depending on the lender. Most likely, you are on a 5 year variable rate at prime minus 0.4%. This doesn't mean that you are locked into 2.60%, but instead, you are going to be 0.4% less than whatever prime is for the 5 year period. Therefore, if the Bank of Canada decides that the prime lending rate was to increase to 4%, your rate would then be 3.6%.

I would speak to your broker to clarify, but feel free to send me a message as well.
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Old 02-13-2014, 09:12 AM   #7
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I really doubt you're locked in at 2.6%. When you lock in, you would be locked into whatever the current fixed rates are, which are currently between 3.09% - 3.39% depending on the lender. Most likely, you are on a 5 year variable rate at prime minus 0.4%. This doesn't mean that you are locked into 2.60%, but instead, you are going to be 0.4% less than whatever prime is for the 5 year period. Therefore, if the Bank of Canada decides that the prime lending rate was to increase to 4%, your rate would then be 3.6%.

I would speak to your broker to clarify, but feel free to send me a message as well.
the entire fake economy would collapse if they raised rates %1 so don't sweat it. Canadian rates are tied to US rates. If the US keeps rates low so will Canada regardless of what's going on here. The US is never raising rates again. It's impossible without completely collapsing their banking system and throwing the government into default. I would be more than comfortable holding a variable rate for the next 5 years over closed. If anything, I wouldn't be surprised if the BOC lowers rates further.
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Old 02-13-2014, 11:51 AM   #8
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Just got approved for Prime - 0.65. Variable is definitely the way to go.
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Old 02-14-2014, 05:54 AM   #9
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Originally Posted by fotze View Post
Anyone know the cheapest rate open mortgage available?
Excuse the cheap plug, HELOCs can be had at 3% through Mountain View Credit Union based in central Alberta who I work for (1 year floating term before moving to market pricing with a maximum 75% LTV in a HELOC) or through ATB (again a 1 year term with a maximum 65% LTV in a HELOC).

Maybe some CP brokers can speak to their HELOC pricing and LTV terms?

I don't know precisely how the ATB HELOC works. I know with ours we attach it to a free chequing account with unlimited transactions (similar to a Manulife One product).

Don't recall seeing an open variable blended payment mortgage option for cheaper then 3% nor have I had to compete against a broker for an open blended payment so I don't believe the lowest rate for one of them is at 3%.
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Old 02-27-2014, 02:29 PM   #10
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Originally Posted by MillerTime GFG View Post
I really doubt you're locked in at 2.6%. When you lock in, you would be locked into whatever the current fixed rates are, which are currently between 3.09% - 3.39% depending on the lender. Most likely, you are on a 5 year variable rate at prime minus 0.4%. This doesn't mean that you are locked into 2.60%, but instead, you are going to be 0.4% less than whatever prime is for the 5 year period. Therefore, if the Bank of Canada decides that the prime lending rate was to increase to 4%, your rate would then be 3.6%.

I would speak to your broker to clarify, but feel free to send me a message as well.
2 year fixed at 2.59% is the number today for a lot of lenders.

Not sure many people are doing only 2 year fixed terms? Are they a bad idea?

Last edited by Flabbibulin; 02-27-2014 at 02:32 PM.
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Old 02-27-2014, 02:57 PM   #11
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Not a bad idea - as discussed so often on this board it all depends on the borrower.
Some might like the 2.59 fixed while others might be interested in the 10 year fixed.
I cant see much happening with interest rates over the next 2-3 years!
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Old 02-27-2014, 03:19 PM   #12
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Exactly what Travis said. It's really borrower dependent. 2.59% is a great rate, but it is only for 2 years. Generally I'm only doing 2 year terms with B lenders for people with income/credit/debt issues as a short-term solution to get them back on the A-side.

5 year fixed is definitely the most popular, with rates anywhere from 3.09-3.69% on the A-side.
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Old 02-27-2014, 03:28 PM   #13
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^ are you seeing the 10 year become any more popular? Rates seem pretty competitive
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Old 02-27-2014, 03:36 PM   #14
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I was seeing a fair bit of interest in them when there were lenders offering it at 3.99%. Haven't really seen that much interest lately, but I do have a lender with a 10 year at 4.39%, so still pretty good...and great for peace of mind knowing you're going to have the same payment for 10 years.
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Old 02-27-2014, 03:54 PM   #15
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I have my renewal coming up fairly soon (coming off a 5 year), but have the intention of buying a new home in a year or two- and hopefully selling current one; don't think I will want to rent it out. Does it make sense then for me to consider a short term? Not sure how penalties work, but I think we are penalized 3 months if we sell while on a closed, but not on an open?
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Old 02-27-2014, 04:42 PM   #16
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It's usually IRD or three months interest. Whichever is higher. But depends on the lender
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Old 02-27-2014, 04:50 PM   #17
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Originally Posted by Flabbibulin View Post
I have my renewal coming up fairly soon (coming off a 5 year), but have the intention of buying a new home in a year or two- and hopefully selling current one; don't think I will want to rent it out. Does it make sense then for me to consider a short term? Not sure how penalties work, but I think we are penalized 3 months if we sell while on a closed, but not on an open?
Penalty would be the greater of 3 months interest or interest rate differential on a fixed. Going with a 2/3 year term isn't a bad choice at all, but penalties are higher on the fixed side. Why not look at doing a 3 year variable? Penalties are much lower with VRM's.
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Old 02-28-2014, 11:35 AM   #18
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One last question- is it true that you cant make extra payments or request an increase in your monthly payment if you are on a fixed rate? Or perhaps you can, but there are conditions? ie. has to be a certain minimum amount, can only do it so many times per year etc??

edit- at least this is the understanding I am getting from my contract. A little confusing for the layman though. Perhaps I should ask my mortgage broker to dumb it down for me??

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Old 02-28-2014, 12:17 PM   #19
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Originally Posted by Flabbibulin View Post
One last question- is it true that you cant make extra payments or request an increase in your monthly payment if you are on a fixed rate? Or perhaps you can, but there are conditions? ie. has to be a certain minimum amount, can only do it so many times per year etc??

edit- at least this is the understanding I am getting from my contract. A little confusing for the layman though. Perhaps I should ask my mortgage broker to dumb it down for me??
It depends who your mortgage is through, but yes you can. Talk to your lender and find out there specific rules. I know with ATB at least you can increase your payment by up to 20% of the original payment amount and 20% per year lump sum on the principle.
Just make sure that increasing is the thing you want to do as sometimes situations change and reducing them can sometimes be a pain. Sometimes it just makes sense to do lump sums.
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Old 03-06-2014, 12:10 PM   #20
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Originally Posted by Flabbibulin View Post
One last question- is it true that you cant make extra payments or request an increase in your monthly payment if you are on a fixed rate? Or perhaps you can, but there are conditions? ie. has to be a certain minimum amount, can only do it so many times per year etc??

edit- at least this is the understanding I am getting from my contract. A little confusing for the layman though. Perhaps I should ask my mortgage broker to dumb it down for me??
Brocoli explained it well. Talk to your broker, he should be able to give you more info as to what your prepayment privileges are. They should also be in your mortgage documents. Prepayments are a great way to pay your mortgage down quicker and save interest along the way. Accelerated bi-weekly payments are pretty effective too.
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