Mortgage Renewal

[Lefty-Canuck]

Hey All,

What a joyous time to renew a mortgage... or not. Any suggestions? Has anyone used the AO SPONSOR who is a broker? Currently with Scotia and haven’t talked about their rate offerings yet but going to be talking soon before things increase again....

LC

[marky_mark]

I got 2.69 fixed 5 years in December from my broker

[heybert]

Banks actually have raised their 5 year fixed. I got a better rate a year ago. Find yourself a good mortgage broker and let them do the homework for you. Variable rates seems to be better at the moment, but since we’re at rock bottom, prepare for it to rise.

[HyperMOA]

I used Tim Lacroix (the AO sponsor) to purchase our cabin. He and his staff are top notch and worked hard to beat everyone’s rate. I ended up getting that mortgage from Scotiabank and when I contacted Scotiabank directly I wasn’t even in the ballpark of the rate he secured for me.

I just renewed on mar1 before interest fell off a cliff (d’oh) and wanted to go with him and had full intentions to, but ATB stepped up to the plate in a big way.

I live in Edmonton and they made the whole process so simple from their offices in Calgary. I highly recommend Tim and Naomi.

[58thecat]

When we had one we shopped around and made all involved know of the others going rates etc...the ball is In Your park so make them want your business....

[B-radshaw]

I cant give much advice for a broker to use but just renewed one of our houses at 1.99 for 5 years.

[dodgeboy1979]

I just went through Colin Bruce to renew mine as he had better rates than TD. Pretty easy process.

[blgoodbrand1]

Not to divert the thread to much but how soon before the 60 month mark do you start looking to renew?


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[reddeerguy2015]

https://www.theplacetomortgage.com/kate/

You'll be hard pressed to find a better broker. She'll work hard to find a mortgage that works for you. Good luck!!

[HyperMOA]

Originally Posted by blgoodbrand1

Not to divert the thread to much but how soon before the 60 month mark do you start looking to renew?


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You can generally apply about 100 days from your renewal is due. I start shopping about 5 months out and will get approvals 75 days out and sign on the last week or two.

[neznam]

I just renewed my mortgage wit RBC 5 years 2.54%

[Pixel Shooter]

5 yr rates went to 2.99% today. just because rates going down, not reflected on lending rates and ima thinkin has to do with pricing to risk...…. can see rates going up again

[Lefty-Canuck]

Originally Posted by B-radshaw

I cant give much advice for a broker to use but just renewed one of our houses at 1.99 for 5 years.

Must be a variable rate?

LC

[Buckhead]

If I was going to renew a mortgage I would wait until this Covid19 issue is behind us if I could. Right now the banks are pricing in risk and trying to move the rates up.
The rates will come down again once things settle down and everyone gets back to work.

[Lefty-Canuck]

Originally Posted by Buckhead

If I was going to renew a mortgage I would wait until this Covid19 issue is behind us if I could. Right now the banks are pricing in risk and trying to move the rates up.
The rates will come down again once things settle down and everyone gets back to work.

I have till October... so not sure I should jump on and gets some rates locked now or wait.

LC

[GStyler]

I use Tim Lacroix as my broker, and would definitely recommend him.

During the last downturn, I was worried about my renewal coming up. I saw him on here, so I figured why not ask him an few questions. He replied with good advice.

When my renewal from CIBC came in the mail, their rates were almost insulting (like 3.6% when published rates at the time were like 2.6%). I didn't even bother replying to them, or answering their phone calls.
Tim got me a much better rate, and the whole process was very easy with him and his team.

[Pixel Shooter]

same boat, im waiting.when you figure it out, call me, see what I can do for u , I know a guy LOL!!!

[Buckhead]

Right now the Canadian 5 year bond yield is right around 0.60%
Typically the spread between that and a 5 year fixed mortgage is 150 basis points. So a good 5 year fixed right now should be right around 2.10%
The banks have added an additional 100 to 120 basis points as a risk premium.
It's a tough call. Are things going to get better or worse? Are we going to see a lot of defaults in mortgage payments?
If you want a fixed payment and that helps you sleep at night, maybe lock it in.
If you're a bit of a gambler, and you have an extra cushion, ride it out.
If I knew the answer I wouldn't be on here. I would be pulling up in my yacht to my private island

[B-radshaw]

Originally Posted by Lefty-Canuck

Must be a variable rate?

LC

No 5 year fixed. Started at 2.79 and have been able to work them down over the last few weeks. First National Financial. My actual renewal date is not till June but they have allowed me to re lock in a rate as its come down.

[Lefty-Canuck]

Originally Posted by B-radshaw

No 5 year fixed. Started at 2.79 and have been able to work them down over the last few weeks. First National Financial. My actual renewal date is not till June but they have allowed me to re lock in a rate as its come down.

Wow that’s amazing!

LC

[Gboe8]

2.49 last week five years.

[mindoutside]

Originally Posted by Gboe8

2.49 last week five years.

www.paultgemortgagebroker.ca

[mindoutside]

Originally Posted by B-radshaw

No 5 year fixed. Started at 2.79 and have been able to work them down over the last few weeks. First National Financial. My actual renewal date is not till June but they have allowed me to re lock in a rate as its come down.

First National is great for competing at renewal

[Big Racks]

My broker got me 5 year variable at prime -.75, so 2.2 currently. Sounds like maybe she could have done better, I was pretty happy though. Evidently discounts were being cut shortly after I got my pre approval.

[daveyn]

To the OP's original question.
What exactly would you be waiting for? rates may come down a little lower but there is really not much more room to go any lower, there is a whole lot of room for them to go up depending on what happens over the next few months. As somebody who remembers mortgage rates in the mid Teens from the 80's my advice would be to lock it in for 5 years at the best rate you can get today and don't lose any sleep over the 1/4% you might leave on the table. The rate you get today , whatever it is, is excellent compared to what it might be down the road. Set it and forget it for about 5 years.

[Glion]

There was just a news article about this. How the central rate has gone down but how banks are raising their rates because they are pricing in more risk... they will also be making more on these mortgages as their spread is larger. Might want to wait a couple months as they might correct and follow the central rate better

[MK2750]

First National has always treated me right. I had agreed to 2.79 last fall as I really didn't want to get involved with calling all over the place. It was early as the renewal wasn't for a month or so.

On the day before the actual date I got a bit of a frantic call from the broker that I needed to resign the documents she had emailed to save an additional 1/2% or something silly. She was more excited than I was but I appreciate her commitment to her work and will not be shopping elsewhere.

[Lefty-Canuck]

Originally Posted by MK2750

First National has always treated me right. I had agreed to 2.79 last fall as I really didn't want to get involved with calling all over the place. It was early as the renewal wasn't for a month or so.

On the day before the actual date I got a bit of a frantic call from the broker that I needed to resign the documents she had emailed to save an additional 1/2% or something silly. She was more excited than I was but I appreciate her commitment to her work and will not be shopping elsewhere.

Good to know! Thanks.

LC

[Lefty-Canuck]

Originally Posted by daveyn

To the OP's original question.
What exactly would you be waiting for? rates may come down a little lower but there is really not much more room to go any lower, there is a whole lot of room for them to go up depending on what happens over the next few months. As somebody who remembers mortgage rates in the mid Teens from the 80's my advice would be to lock it in for 5 years at the best rate you can get today and don't lose any sleep over the 1/4% you might leave on the table. The rate you get today , whatever it is, is excellent compared to what it might be down the road. Set it and forget it for about 5 years.

Solid point! I guess my concern is how much is it likely to increase in the next 6 months.

LC

[Pixel Shooter]

typically the most competitive time for mortgage rates is the next 3mths. so hang in there.