Mortgage interest rates

Supergrit · #1 05-14-2022, 10:34 AM

Wondering if anyone has renewed their mortgage in the last month curious what Interest rate did you get. I am just going to renew mine.

tirebob · #2 05-14-2022, 10:42 AM

I am being offered 5 year variable at prime minus 1.20% or 5 year fixed at 3.29 percent. I have until June 19 to lock in either and am holding off to see how things are playing out.

Dean2 · #3 05-14-2022, 10:52 AM

The current 5 year fixed being offered is up to 4.59%. My advice: I would seriously be looking at locking in that 3.29 because the posted Bank Prime is now already 2.95% and it is a long ways from the top of where it will go.

Cement Bench · #4 05-14-2022, 10:54 AM

just getting mine locked in 2 weeks ago for 3.95 and it was higher than some banks
went with atb

Positrac · #5 05-14-2022, 01:44 PM

We locked in for 3.23% for a 5-year fixed rate a couple months ago because rates were going up and we were looking at buying another home but didn't know if we would need additional funds over what we would get for our place. We ended up just closing on a home that was over 100K less than we got for ours so we're paying out the mortgage with a under 4k penalty and going with the new rate of 3.23% for the next 5 years. The 5-year fixed term we were in was comparable at 3.34% and we had less than a year left on the term. Made sense for us to pay the small penalty since this is the last term we will have on our mortgage so peace of mind was important and like has been said who knows where the rates would be when we were set to renew.

Dean2 · #6 05-14-2022, 02:57 PM

Just for everyone's interest. If you take a new mortgage for close to the same amount at close to the same interest rate as the mortgage you are paying out, you should be paying no penalty. At worst you owe them the lesser of interest rate differential for the balance of the term or 3 months interest on the amount you have taken that is less than your previous amount. Another consideration, if the buyer assumes your mortgage or takes a mortgage from your same bank there should be zero penalty. Also, if your mortgage is not up for a while, talk to them about a blend and extend mortgage, simple form, you take a new 5 year rate and they blend the rate of your existing mortgage with the new 5 year rate.

Banks are offering up to 20,000 cash back for new mortgages, they pay brokers from 1/2 to 1% for the mortgages they buy from them but don't generally offer any discount to people coming direct for a loan. They also often offer better rates to brokers than to their own customers. Be aware of this and the info above and use it to your advantage. Don't rely on your bank to be up front and tell you this stuff.

Twisted Canuck · #7 05-14-2022, 03:16 PM

Very good info Dean, I've also had some very satisfactory dealings with a broker, the bank wasn't willing to offer me the lowest rates so I let the broker make some money and I saved a good bit going that route.

muirsy · #8 05-14-2022, 05:53 PM

We bought back in August and were on a 5-year variable @1.25%. After few bumps up to the 2.5% mark in only a few months we decided to lock in last week after really mulling it over. The best we could get was 4.24%.

Sucks, but I just couldn't see our variable rate staying under 4-5% in the next 5 years, and not to mention the constant worry/uncertainty.

J

nelsonob1 · #9 05-14-2022, 09:10 PM

Quote:

Originally Posted by tirebob

I am being offered 5 year variable at prime minus 1.20% or 5 year fixed at 3.29 percent. I have until June 19 to lock in either and am holding off to see how things are playing out.

I'd be surprised if you could better that deal. We are seeing 5YF @ 3.9++.

General sentiment in our office is 3-4 more rate hikes in the next 12m to a base of 3-4.

Supergrit · #10 05-14-2022, 09:43 PM

4.09 fixed for 3 years or I think it was 2.6 percent variable for 3 years. If a person shops around is it possible to find a better rate and bring that back to the bank and they might change rate lower? I would think not the banker told me I have until Friday to decide and the rate they offer now is 4.2 my rate was locked in last week.

kinwahkly · #11 05-14-2022, 10:29 PM

2.79 fixed 2 years.

Ackleyman · #12 05-15-2022, 08:51 AM

Always wise to research and get best deal. Lots of $$ at stake.
I had a mortgage back when houses were considerably cheaper but rates were brutal. Glad its long gone and hope with price of houses the younger generation does not have to deal with it.

1981
With record-high prices for oil in August 1980 that continued into 1981, the Bank of Canada rate hit an all-time high of 20.03% in August 1981. The lowest rate reached during this period was 7.14% (March 1987).

Positrac · #13 05-30-2022, 07:37 AM

Quote:

Originally Posted by Supergrit

4.09 fixed for 3 years or I think it was 2.6 percent variable for 3 years. If a person shops around is it possible to find a better rate and bring that back to the bank and they might change rate lower? I would think not the banker told me I have until Friday to decide and the rate they offer now is 4.2 my rate was locked in last week.

How did you make out Supergrit?

We lucked out when we locked in for 120 days back in March at 3.23% for a fixed 5 year term. One of the members here gave me some great advice on bargaining with RBC and in the end they dropped our penalty for paying off our existing mortgage when the sale on our present home closes June 23rd. We then have the fixed 5 year term on our new place at 3.23%. It still took some tough conversations with our banker because with rates going up so fast the ball is in their park. The market being down doesn’t help either because they know no one wants to pull there investments out to go somewhere else. In the end we managed to get what we wanted so you know they are making out ok when everything we have with them is considered.

With buying a cheaper home and lowering our mortgage if we buckle down with a few extra payments along the way we won’t have to worry about what rates are in 5 years.

CDNOutdoorsman · #14 05-30-2022, 12:50 PM

with all this mortgage talk, does anyone have a great mortgage broker they could pass on?
We are due to renew in Nov but would like to get on it asap as I know where the rates are heading.

Thanks

Dean2 · #15 05-30-2022, 01:04 PM

Quote:

Originally Posted by CDNOutdoorsman

with all this mortgage talk, does anyone have a great mortgage broker they could pass on?
We are due to renew in Nov but would like to get on it asap as I know where the rates are heading.

Thanks

1st step, go to your bank and ask them to work out the Blend and extend solution on your existing mortgage. basically allows you to renew now at today's rates. Once you know what that looks like you can talk to a broker and see if he can better the deal.

CDNOutdoorsman · #16 05-30-2022, 01:18 PM

thx Dean

Supergrit · #17 05-30-2022, 05:37 PM

<Name > Leanne
<Mobile > +1 403-505-9906 I called this lady she mortgage broker seemed super nice and had good advice

Sundancefisher · #18 05-30-2022, 06:36 PM

Quote:

Originally Posted by Dean2

1st step, go to your bank and ask them to work out the Blend and extend solution on your existing mortgage. basically allows you to renew now at today's rates. Once you know what that looks like you can talk to a broker and see if he can better the deal.

Best advice