yep, I understand how it works. Thanks.

I am just so surprised that 30 year fixed rates isnt a norm in Canada as it is in the states! :eek:

I know.. 4 7/8th for 30 year FIXED is so good a deal... but it does not make sense for me to refi, as it would take me about 4.5 years to recoup the refi costs to get me down from 5 3/4 to 4 7/8th..... man... and not to mention the new Obama First-Time Owner program tax credit of $8000!!!!!!!!!!!!!!!!!!!

Yes, $8000 tax free to YOU if you buy a house for the first time in 2009!! I bought my first house last year and I am not qualified for the $8K!!!

:(


interestingly,because the fixed rate is so low right now, most people do not get ARM anymore here!

www.bankrate.com

The 30yr fixed has been hovering around 4 3/4 to 5% in the past 6 weeks!

I woud not lock in at all, since you would've had to renew > 1yr ago, and it'll be > 1 year till we see significant interest rate rises (IMHO). So out of 5 years you get basically 3 with super low rates, I'd chance the last 2 years, the penalty to break and lock in won't be worth it.

I know how you feel, when they changed the GST here I missed out on the change by less then a week. If I would have signed the papers on my house 7 days later I would have had over $5,000 extra in my pocket, I was so pissed at the time.

Can canadians take mortages out from U.S banks to purchase a home in Canada?

quick answer NO!

quick update... a co-worker and friend just closed his mortgage at 4.5% with 0 points for 30 years fixed!!!!!!!!!1

HOLY SHXTTTTTTTTT..... damn it.. thats like $200 per month (or 2400 per year or 72000 per 30 years saving I would have if I get a 4.5%, not to mention all this is aftertax money).

Damn... thats low.........

Wow, if only there were other Americans on this board who cared.

wow thats nuts.

Great deal. If you were doing okay during this recession, you're going to get very sweet deals for the next 30.

Can you Port mortgages over there PNF? (i'ms ure you can, just curious what you would call it.)

What does Port mortgage mean? If you can explain it a bit, then maybe I'll think of the term thats down south. (or probably just the same term and I am just not aware of it. ha ) I thought I did very well until I see the recent rate quotes. I am loving this stock market right now! I am one of the lucky ones who had a zero dollar portfolio and just started investing in equity the last 6 months, which happen to be the bottom of a cycle (at least it seems that way right now). Just loving it right now. I only wished that I had more money to invest.. (I dont day-trade if you hadnt noticed, so I dont post in that other "stock market thread". :D )

So, how you're doing GTR? Recession certainly seems to be turning a little bit right now. (OP, sorry to go off topic a bit. :D)

misteranswer, well, if you're into investing, I'm sure you dont "only" look at the canadian market when you invest, do you? You should be concerned with how US economy works if you're into investing or real estate, for reasons I am sure you are already aware of. I am sure UBC commerce and/or other business schools read WSJ, which by the way, writes about US economy 90% of the time. I know I did when I was still at UBC.

Just trying to help and put things into perspective.

Port basically means moving the mortgage around from house to house. IE : he made a killing on this mortgage but say in 5 years he sells, can he move this mortgage to another home and have the difference with new rates so he still keeps this great mortgage rate and average out with the new rate.

I'm doing alright, i haven't made any killings this last little while, other then the Vegas stocks aka MGM and LVS. I haven't even touched the market, money is tied up else where.

As for the market/recession: What's your opinion?

I see this as a blip in a bear market, It's hard for me to believe that things are getting better when i have friends getting laid off in accounting firms? (apparently they aren't recession proof, as i thought they were.). As well as investment firms, makes me weary.

All in all though, i hope my weariness is just a by-product of seeing to much layoffs/firings. And this is a recovery of the recession.

What bout you? How are things for you, PNF?

*Sorry for de-railing your entire thread =P*

Any more mortgage rates questions?! We're happy to answer!!

I see (on the Port mortgage).

Personally, I havent learned or heard anyone could transfer the mortgage rates. I am sure there are banks/lenders who would do it, but I am sure it is not one of the main stream products.

People usually just do it the traditional way when they trade up. i.e. if you owe $200K on your house, and you're selling your house and getting a new one. You just take the money (say if you sold your house for $250K), use that $250K to pay off the $200K original mortgage, and put that $50K toward the downpayment of your next mortgage at the NEW rate. So, if you had a 3% in your old mortgage, it wont carry over to your new mortgage. However, I do think it is possible if you get your mortgage through the same lender for both 1st and 2nd deal, but I really do rarely hear about it.

Then again, I'm not a lender, so I cant say that is not happening.

As for how I'm doing, damn it, was doing better.. haha.. Im hovering around from 5% to 80% the last 4 weeks, with average around 30% on a very small investment portfolio I have... :D

I know, I agree somewhat, as a friend of mine, a NJ CPA!!! got laid off just a couple months ago. But she did get a new job rather quickly, within a month.

So, its hard to say. But I do think we are near if not at the bottom of the cycle now. Just have to hold on tight I guess.

PS. read an interesting online article on Yahoo Job that 2009 graduate on average will receive about 8 or 9% less pay with the exact same degrees in the same/similar industries than if they had graduated back in 2005.

That sucks..

The same was true of the tech bubble, if you graduated during the bubble you made easy money (I started at $67K), after the bubble burst companies were hiring for pennies for a couple years (some of my coworkers were hired for $42K) cause there were so many people looking for job due to too many graduates and lots of layoffs.

Just a quick note to all of those people who think brokers are the be all end all for getting the best rate. I work for one of the big Canadian FI's and I was able to beat the broker's rate not to mention my clients never pay for appraisals or 'admin fees'.

omg. this is the first time reading about rates and Im scared. What do you need to qualify for prime rate in bc?

currently you can't get prime. maybe prime +.6 or so for varible. although right now I'd be looking at fixed rates. because they'll be going up in the couple couple years.

Work gives me prime minus 2 on 5 year fixed.

Ironically, I don't own anything in Canada right now as I sold everything off.

I do own a place in the US however that's not done through work and I got it a while back at 3% closed 20 year fixed.

You are either lying or you misunderstood something

The prime rate right now is 2.25%. If your work indeed gives you prime - 2%, you are pretty much getting INTEREST free money. (0.25%) They might as well give you free CASH instead of offering you a loan like that.
(To add to that, most variable rates are 0.5%-1% LESS than fixed mortgage, so do you get negative interest rate mortgage if you go variable?)

And I have NEVER heard of any major banks offering 20 years FIXED mortgage. They all offer a mortgage that is amortized over 20 years, but the rate has to be renegotiated every 3/5/7/10 years.

friend of mine who is a senior director at CIBC just got his mortgage for 3.45% / 5 years fixed, which I would say is already the very best rate ATM.

I need some advice on mortgages. Let's say I have 2 mortgages both for the same mortgage amount, however one is at 5% and the other is at 3%. Which one should I try to pay off faster first? I would think I want to get rid of the higher one first but someone said I should pay off the lower one first as more of my money will hit the principle portion instead of the interest portion.

XXXRSXXX - Assuming all other variables are the same (term, amortization, payment frequency, principal, etc) pay down the one with the higher interest first. It is costing you the most in interest, and the sooner it is gone, the sooner you will have more money to put towards your other debts/mortgages/cars... There is also software you can purchase that shows you how to pay of your mortgage faster using a equity line of credit and without increasing your current budget. I know of a few people that have used it and swear by it.

USA does

I understand completely. I've worked as a mortgage lender, planner, and now as a commodities trader and investment banker. It might be a bit hard to digest but it is what it is. $1,000,000 loan is $2500 a year in interest only payments. In theory, based on my income from just my employer alone (not including the money made trading commodities) I'd qualify for a bit over $2 million on a 25 year term which is stupid. I work with some people who've borrowed like crazy and chances are they're going to be in serious trouble once they have to renew or if they lose their job (we have no job stability).

They have since put a cap on the amount $250,000 for general staff, $1,000,000 for senior management; (it previously was unlimited provided the buyer met qualification criteria) the rate offered is still prime minus 2.

I actually have to pay a penalty to the government in taxation because my rate is lower than the acceptable rate. (see acceptable interest rate rules of Canada for more details on what is deemed appropriate)

Plenty of investment institutions offer reduced rates on their loans for staff and most of the big 5 banks are not competitive compared to some of the other institutions out there.

Our company has the exact same rate for staff to pick a variable 5 year so where is the incentive? I understand that typically there is a different % between fixed and variable but with staff this rate is what it is.

I can understand the confusion but can you really blame me? Who isn't going to take a mortgage or loan at that rate?

Well, if you say so.. although those rate are hella low even in comparison to what I have been shopping at. Then again, I dont work for a bank and my friend just closed a 4 5/8th on a 30 year fixed loan and a 4 1/8th on a 7 year ARM.

Most banks only offer 15 or 30 yr fixed rates. Very rarely do I see any 20 year fixed, although I do see that is possible and negotiable via some smaller banks?

Its either 3/5/7/9 ARM or 15/30 fixed.

I'm speaking from the US perspective and I just closed 2 houses in the past 2 years. (well, a townhouse and an 1 BR apartment for investment) and I have 5.75% on 30 year on my primary residence and another 5 3/8th on my 1 BR (you need to add 0.5 - 1% on investment properties on top of whatever rate you're getting)

So, I have no idea where to find those 3% ish 5/7 ARMs, and I'd jump on them if I found them.

How is your CFA going? You finished yet?

im at 1.5% variable open, rbc

Old mortgage rate you got before prime dropped I assume?