Mortgage renewal time, what sorts of rates are out there?

[Big Racks]

I've just received my renewal documents, mortgage is with First National. Renewal rates don't seem too bad, although they're the same rates I see posted on their website so they aren't exactly doing me any favours. Just curious what else other members have been seeing.

5 year variable is at prime -.50%, so 2.5%.

Best fixed is a 2 year at 2.59%. 5 year fixed is 3.19%.

All of my other business is with BMO, but their posted rates are horrendous, not sure about real rates, nor what to expect from First National if I call.

[DeNomad]

I just picked up 2.89% 5 year fixed with RMG. I went through a mortgage broker. I like letting someone else sort through the best deals.

[Sundancefisher]

BMO will match if not beat posted rates from other competitors if you have good credit.

Negotiate your rate.

[dantonsen]

anything around 3% is dirt cheap. I see alot of five years creeping on 5% now.

Historical norm is 7% + so get as long of a fixed rate as you can while everything is dirt cheap.

[kmacisaac]

I just resigned my own renewal. When my letter came in the mail I sat on it for a month or more because I was out of town. They dropped their rate once they figured I was looking around. I ended up with a 2 yr fixed at 2.69%. I could have went elsewhere for the 2.59% but where my wife and I are right now with our mortgage, it would cost more for the filing of paper than it was worth for the .10% saving.
Rates are pretty good right now.

[SBE2]

2.4% over 5yrs, variable, is what I just signed.

[From The Hip]

Originally Posted by Big Racks

I've just received my renewal documents, mortgage is with First National. Renewal rates don't seem too bad, although they're the same rates I see posted on their website so they aren't exactly doing me any favours. Just curious what else other members have been seeing.

5 year variable is at prime -.50%, so 2.5%.

Best fixed is a 2 year at 2.59%. 5 year fixed is 3.19%.

All of my other business is with BMO, but their posted rates are horrendous, not sure about real rates, nor what to expect from First National if I call.

Originally Posted by Sundancefisher

BMO will match if not beat posted rates from other competitors if you have good credit.

Negotiate your rate.

I suggest you get BMO to beat the 5 year fixed rate of 3.19% that or go with a mortgage broker.If BMO is serious about getting ALL of your business they will be the bank that will jump at the chance when your paper is offered up.On a side note I highly suggest you take a look at your ammortization and shorten it if you have the financial ability to make the larger payments.The longer a mortgage runs on term the more interest you pay.Yearly over payments make a difference but no where near as much a difference as a shortened ammortization.Simply put if you bought a 500k home with 5% down and made the monthly payments over 25 years at todays interest rates that 500k home would cost you over 1 million....add 4-6% interest rate increase over that time period as rates are going no place but up and the cost of that 500k home rises a lot more than 1 million.

I got my home paid off in 10 years and 11 months due to the combination of shortening my ammortization and hammering my mortgage with yearly over payments.I could have done it in 6 years if I did not get into some frivilous hobbies.

FTH

[DoubleU]

Big Racks, today at TD I got 5 year 3.09% fixed.

[oldjeda]

I checked out some numbers with Scotia then looked at a mortgage broker. He got me a better rate with the same bank, same branch. No idea how that worked but I'm glad I looked into it.

My 2 cents worth.................

[From The Hip]

Originally Posted by oldjeda

I checked out some numbers with Scotia then looked at a mortgage broker. He got me a better rate with the same bank, same branch. No idea how that worked but I'm glad I looked into it.

My 2 cents worth.................

Thats because the mortgage broker gets less commission.The same bank grabbed the ABCP(asset backed commercial paper) as you are not a risk and it is pure profit for the bank.When it comes down to it mortgages are the bread and butter for bank profits.You dont see many people that have a $500,000 Visa card...but...there a LOT of $500,000 mortgages in Canada.

By using a mortgage broker you cut out the middleman and saved yourself money....I do hope you adjusted your period of ammortization though.

FTH

[Big Racks]

Thanks for all the info everyone, much appreciated. I email the mortgage broker we used when we bought the house, will see if she comes back with anything better. First National has been very easy to deal with so there would have to be something in it for me to actually move it, just matching won't cut it. I thought BMO used to offer Airmiles incentives on their mortgages, or on transferring a mortgage, but couldn't find anything on it.

As for ammortization, I usually bump up my biweekly payments by $100 or so to help with the principle. Plan on continuing that practice, with a bit extra as I have a decent raise coming up within a year, may as well put it to good use.

[From The Hip]

Originally Posted by Big Racks

As for ammortization, I usually bump up my biweekly payments by $100 or so to help with the principle. Plan on continuing that practice, with a bit extra as I have a decent raise coming up within a year, may as well put it to good use.

Good on you for going for the bi-weekly payments but it is not the same as changing your ammortization.Change your ammortization from 25 years to 15 years and crunch the numbers.Yes the payments are more but you will slay that debt faster and with far less interst paid.Banks just LOVE people taking 25 years to pay off a mortgage as they make more money.Shorten the time frame and you do nothing but save money.

FTH