XXX Over 19 Only!!!!!

Discussion in 'TRIBE Main Forum' started by Lurch, Jan 22, 2002.

  1. Lurch

    Lurch TRIBE Member

    Mortgage rates are at an all time low and I want to switch to a lower rate after 1 1/2 years of my 5 year term. Rosey? ChrisD? Anyone have any advice?? I hear CIBC is real good right now. I am currently with RBC.

    To everyone who thought this was porn.....sorry [​IMG]

    LuRcH
     
  2. Eclectic

    Eclectic TRIBE Member

    Oh...
    My...
    God...


    I just made an ass of myself at work by laughing out loud...


    "Thank God for ALT+TAB"
     
  3. labRat

    labRat TRIBE Member

    i tried lowering my rate after a year into a three year dilly. the best they could offer was a 'blend and extend'. my rate would've onlly dropped a percentage point and it meant that i would have to stay on for another two years. i didn't like that so i decided to stay with my current one.

    usually penalties for getting out of a mortgage range, but are usually three months worth of interest. and since your mortgage is still relatively new, that'll be a good chunk o' change.

    my sister just got a mortgage, she went to a broker and they got a good deal. it was variable, 5 years, can lock it in at any time at 1 point below prime. pretty good.

    best thing would be to go to a broker if you are serious about it.

    --craig
     
  4. OTIS

    OTIS TRIBE Member

    ask LRP..

    Dat. Man. Kno.
     
  5. Klubmasta Will

    Klubmasta Will TRIBE Member

    if you're serious, send me an email and i will send you the name and number of my mortgage broker.

    he will get you a far better deal than anyone tied to a bank or other institutional lender.
     
  6. Lurch

    Lurch TRIBE Member

    Are you sure he can do better? CIBC is at 1% below prime (2.75%)
     
  7. depraved

    depraved TRIBE Member

    Almost correct; the penalty is the usually 3 months interest of the interest rate differential, whichever is the higher of the two. Either way, early repayment means a big chunk o change.

    Consumers actually have no right to repay mortgages of 5 years or less; it's up the the financial institution whether they'll even let you.

    - Greg
     
  8. depraved

    depraved TRIBE Member

    Ooops; that shoud've read:
    "...the penalty is usually 3 months interest OR the interest rate differential...
     
  9. Guest

    Guest Guest

    1-967-MAN-SLUT
     
  10. Klubmasta Will

    Klubmasta Will TRIBE Member

    i am sure.

    cibc's 'better than prime' deal is available to anyone off the street. a mortgage broker will find you the best deal available anywhere. (and it won't cost you a penny.)

    last october, i got a 5 year variable mortgage from mcap - it started out at 1.990%. (you have to realize that the super-low rate is only good for the first few months of your mortgage - in CIBC's case, the first 9 months.)

    you probably won't reap the benefits for the full 9 months though, anyway, because mortgage rates are going up and you will likely want to lock in before then.
     
  11. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    shuddup math boy.

    1 percent below prime won't seem all that pretty if the prime rate goes up drastically in a year and a half's time(certainly possible).

    Jeff, give me a ring at work if you like...416-759-4121ext249

    I'll need to ask you a few questions before I can recommend the best product for you.

    In response to Will, a broker is definitely a good way to get a good rate. The only disadvantage is when the rate has been booked with a smaller mortgage lender with less service distribution(no branches). I personally find it extremely important to be able to hold someone accountable when things go wrong, or get the service I deserve when I have maintenance requests.

    My cousin got a good rate through a broker at MCAP. In my opinion, the worst institution to deal with both personally and professionally. The service was horrible, and although the fixed rate was impressive, you get what you pay for.

    Jeff, before jumping on a good rate, ensure that you know what your early discharge penalty is, as well as the prepayment policy of the new lender(how much you can add to your mortgage payments or lumpsum per year).

    Its always good to know what you're getting yourself into. Most institutions have very similar effective rates on their products, they are just packaged differently.

    Dan
     
  12. Klubmasta Will

    Klubmasta Will TRIBE Member

    always a salesman, eh dan? [​IMG]

    who cares about service and branches? it's your mortgage lender, not your bank. the ONLY services they have to provide are (1) lend you the money on your closing date and (2) discharge your mortgage when you sell. (the second one will be the next purchaser's problem anyway.)

    as for different options in your mortgage, again, a good mortgage broker will go over all of this with you in detail and will arrange the best possible deal.
     
  13. Lurch

    Lurch TRIBE Member

    Ok Ok you two boys stop fighting [​IMG] Will I sent you an e-mail. Dan I will call you soon [​IMG]
     
  14. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    Speak for yourself, lawyer boy [​IMG]

    There is something to be said with having a relationship with your bank. This is especially evident when looking for pricing on further investment and credit needs. The deeper the relationship you have with your bank, the better the pricing will be. This could translate specifically into getting a good rate on a car loan, to getting a bonus on your gic investment. Relationship is in many cases rewarded.

    Need to request mortgage details sometime during the term? You can drop by any branch in the country and get what you need.

    Need to make an extra lumpsum payment to your mortgage from the tax refund you got back the government after contributing to your RRSPs? Easier with a larger service distribution network. This can be done over the phone with an operator, internet or at any of the branches.

    less distribution=less service

    simple as that.

    Dan
     
  15. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    sounds good buddy.

    I'm here until 8pm if you need me.

    Who's fighting? Just making a point.. [​IMG]

    Dan
     
  16. Lurch

    Lurch TRIBE Member

    Dan I was just kidding yo....I am calling you now.....

    ......Ring ring

    ...hello Neo [​IMG]
     
  17. Klubmasta Will

    Klubmasta Will TRIBE Member

    sure, there are *conveniences* associated with getting your mortgage from your existing bank. but how often will you actually use those conveniences? is it really that much more work to make an extra phone call or two to achieve the same end result?

    if you have to give up a couple of points on your interest rate - a rate that applies to the single largest loan you will probably ever have - over a 5 year term, this translates to THOUSANDS of extra dollars.

    getting a mortgage without a broker is like buying a house without a broker or arranging insurance without a broker - it's insanity. (brokers offer a free service and they *will* get you the best available deal - in terms of mortgage rates, rights, etc.)
     
  18. djcheezwhiz

    djcheezwhiz TRIBE Member

    or going to court w/o a lawyer [​IMG]

    anyways y'all have good points, i tend to side a little w/ dan...if you're pretty well versed in mortgage terminology etc (which it sounds like jeff) dealing without a broker is not a bad idea...do some projections on money actually saved to the end of the mortgage term, vs the cost of paying out right now (figure out present value of the differences in payments)...

    also explore this option...how much would you save if you took the money you were going to use to prepay & pay it against the mortgage...

    with variable rate mtgs (which it sounds like you are looking into)...explore the option of a rate capped mortgage...ie variable, but there is a cap on it if rates go higher...usually slightly higher than a straight variable...

    finally (i think)...if you go into a variable mortgage, find out if you can switch to a fixed rate mtg during the term...most places (ie TD Canada Trust) will let you do this for a small fee, but if you smile nicely it will be waived...

    & one more thing...explore 6 month conv mortgages...you can lock into a longer rate at any time & you can also look at discounts from the posted rates...

    oh yes, & understand variable rate mtgs are compounded monthly vs semiannually so make sure you know the effective rate...

    john

    ps if you didn't put that goddmann xxx in your post i would have opened this at work & given you some info sooner [​IMG]

    pps both will & dan make great points...
     
  19. djcheezwhiz

    djcheezwhiz TRIBE Member

    sorry that first line should read

    dealing with a broker is not a bad idea...

    jc
     
  20. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    A couple of points??? Will, I deal with brokers on a regular basis, and in this rate climate, its nearly impossible to find a mortgage a couple of points below some of the bank deals.

    I completely agree with you that deciding on an institution is a large decision. I just think you're painting too pretty a picture.

    Should I bring out the mortgage calculator to show what the differences would be?? I happen to have a pretty comprehensive list of competitors and their current rates. Sure, it doesn't account for rate discounts, but I can use our posted rates as a comparison.

    Brokers can be a great idea, I don't discount that. I'm just trying to make light of the disadvantages and realities that come part and parcel with them.

    Dan
     
  21. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    whoa, just read that again, and if you meant basis points, than i withdraw the first statement. If you did in fact mean basis points than I would like to emphasize that the difference is not as much as you think in a 5 year term.

    Dan
     
  22. Klubmasta Will

    Klubmasta Will TRIBE Member

    respect to dan and cheezwhiz.

    http://www.great-mortgages.com/

    the above site (which may or may not be reliable) shows differences in major mortgage rates to be the difference between 6.85% and 5.54% --- so a 1.31% difference.

    multiply this to a mortgage of, say, $200,000 and then multiply that by, say, a 5 year term and you have a savings of $13,100.

    i did not calculate the present value of the future savings because that would have been overly complicated to prove this point. i also acknowledge that the savings on that website are a bit exaggerrated but a good mortgage broker WILL find you rates that are better than those offered by the big 5 banks. (are there still 5 big cdn banks?)

    if still doubtful, then go visit your bank rep, negotiate the best deal you can and then go to a broker and see if he/she can beat it. [​IMG]
     
  23. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    I'll bet you that there aren't any further discounts on that 5.4%. Most banks will give you a full one percent off the posted 5 year fixed rate. That puts the difference at .45%.

    Now, if you consider other deals each instition offers like variable rate mortgages with a rate cap(ours starts at 4.5%, moves with prime and is capped at 6%) or mortgages like our deep discount mortgage that is 4.95% in the first year and 5.8% from years 2-5(effective 5.62%), you can narrow that margin even further.

    That being said, is .2% really worth having to deal with the mentioned inconveniences? Hardly.

    I'm just wondering Will, I know you're not in the industry, but when you looked for your mortgage, did you go straight to the broker? Or did you speak to someone at your bank first??

    Dan
     
  24. LivingRoomPornstar

    LivingRoomPornstar TRIBE Member

    ^^^that was supposed to read "institution" on the first line of the second paragraph.

    Dan
     
  25. MalGlo

    MalGlo TRIBE Member

    hahahaahahahahahahahaahahhaahahahaha
     

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