Renewing Mortgage Options

[cdizzle_996]

Hey guys my condo is coming up for renewal on June 1 and im looking for options.

- My place is currently listed for sale.

- Im not buying a place for 2 years once my place sells.

If I dont sell by June 1, I have to renew, but dont want to lock in for 1-5 years obviously.

- How does an open mortgage work? Is there a penalty?

[tiger_handheld]

open = no penalty
variable = take advantage of low rates today

open variable = your best friend

[blkgsr]

ya they'll just transfer it into an open mortgage (no term) at a much higher percentage (probably like 3.5+%) till you sell/CLOSE on the condo

not a big deal (and probably not a lot of money difference over the short term)

[cdizzle_996]

Okay that's pretty much what I figured.

I'm already at 3.61% (best o could get 5 years ago) so it shouldnt change much.

Thanks!

[Drow]

rates were that bad back in '10?

or did your bank jip you

[blkgsr]

i'm up at the end of the month and i'm currently 3.69%

that was good at the time

[quasi]

Originally Posted by blkgsr

ya they'll just transfer it into an open mortgage (no term) at a much higher percentage (probably like 3.5+%) till you sell/CLOSE on the condo

not a big deal (and probably not a lot of money difference over the short term)

Always double check and read the fine print, Scotia will lock you in or at least try to. I had my closed variable come due with them, I was trying to get them to match RBC's rate at the time on a 5 year fixed, I had some meetings long story short due date came and they rolled it over and locked me in for 5 years at posted rate, I was under the assumption they would move me into an open variable. After the fact I read the contract and sure as shit it was in little print on the back. It took a lot of heated words but I eventually got them to reverse it then I pulled everything out of there, the Mortgage, RSPS, RESPS, cancelled all my credit cards and all my day to day banking I will never step foot in Scotiabank again and my wife and myself both banked there for 20 years.

[blkgsr]

that's dirty....

[ncrx]

scotia is notorious for this.. i would advise most ppl to not deal with them

[cdizzle_996]

Originally Posted by Drow

rates were that bad back in '10?

or did your bank jip you

Its funny shortly before I got my place/mortgage I went and spoke to some one at my bank to discuss mortgage rates, afforadability ect..

They told me 4.29/5 years.

I found a place, got a mortgage broker and he found 3.61 from a smaller lender back east. He contacted my bank and asked them if they were willing to match the rate for me as i'd banked there since I was 5 years old. They didnt even blink an eye and matched.

Pretty sleazy that they tried to steal 0.6% from me but I bet they run into people all the time that done shop around.

[quasi]

Originally Posted by ncrx

scotia is notorious for this.. i would advise most ppl to not deal with them

The thing that really pissed me off is I had 2 face to face meeting plus multiple emails were sent back and forth and not once did the person I was dealing with tip me off that they would auto lock me in if we didn't sign something beforehand. I understand I should have done my due diligence reading the fine print on my existing contract but I typically deal with the mortgage once every 5 years they deal with it daily and I figured it would just go into an open mortgage at posted.

At the time it was so ridiculous because I had my mortgage split up, half was coming due and the other half was locked in for another 3 years or so. RBC was offering me a rate, I took RBC's rate and worked it out on a spreadsheet right next to Scotia's rate they were offering me. I figured out the penalties if I bought out of my locked in half and added that into what I'd pay at RBC. Even paying the penalties Scotia would have cost me more money over 5 years, I give sit down and show them. I'm thinking long term customer I know major banks can match major banks but NOPE....Sorry this is the best we can do if you have to take your business elsewhere we understand..........

That was the end of banking with those cocksuckers, of course once I followed through, called there bluff and stated moving my business it was, "Oh what can we do to get you to stay".

[blkgsr]

i'm having to let me mortgage go in limbo for a few weeks as my new lender won't be able to pick it up in time (late application) and the best scotia is prepared to offer me (not that i have much choice) is a 6 month open at 6.45%

[quasi]

Make sure you sign that up before due date so they don't do to you what they did to me.

[blkgsr]

i've had her email me to confirm

[Drow]

Originally Posted by blkgsr

i'm having to let me mortgage go in limbo for a few weeks as my new lender won't be able to pick it up in time (late application) and the best scotia is prepared to offer me (not that i have much choice) is a 6 month open at 6.45%

at bmo there is a 3 year variable open @ 3.7

[ncrx]

Originally Posted by quasi

The thing that really pissed me off is I had 2 face to face meeting plus multiple emails were sent back and forth and not once did the person I was dealing with tip me off that they would auto lock me in if we didn't sign something beforehand. I understand I should have done my due diligence reading the fine print on my existing contract but I typically deal with the mortgage once every 5 years they deal with it daily and I figured it would just go into an open mortgage at posted.

At the time it was so ridiculous because I had my mortgage split up, half was coming due and the other half was locked in for another 3 years or so. RBC was offering me a rate, I took RBC's rate and worked it out on a spreadsheet right next to Scotia's rate they were offering me. I figured out the penalties if I bought out of my locked in half and added that into what I'd pay at RBC. Even paying the penalties Scotia would have cost me more money over 5 years, I give sit down and show them. I'm thinking long term customer I know major banks can match major banks but NOPE....Sorry this is the best we can do if you have to take your business elsewhere we understand..........

That was the end of banking with those cocksuckers, of course once I followed through, called there bluff and stated moving my business it was, "Oh what can we do to get you to stay".

ive had generally good experiences with TD, the least run around and bs. but i've got all sorts of accounts with them, small bus, investments, etc
i have also used lenders before, but i've got enough pull at td now to get a rate that a lender might not be able to get
give TD a shot, ping me if you want a contact to a good lender who's honest and follows up well if u still need one or even a contact at TD

[blkgsr]

Originally Posted by Drow

at bmo there is a 3 year variable open @ 3.7

this is only for a short term (hopefully 2-3 weeks max) laps before my new lender picks up my mortgage

I'm at scotia already

[Drow]

Originally Posted by blkgsr

this is only for a short term (hopefully 2-3 weeks max) laps before my new lender picks up my mortgage

I'm at scotia already

For future needs PM me and ill take good care of you.

[Rallydrv]

Bringing this thread back to life.

looking around to renew my mortgage. (coming up in dec.)

at a shitty rate atm. however my bank has offered fairly good rates, and i can renew now without penalty. or going thru notary to redo renewing papers etc.


i've been seeing 1.80 at canwise financial . anybody dealt w/ them?

[cdizzle_996]

When my mortgage was up my bank offered me a decent rate but a broker was able to get a better rate.

He contacted my bank and they ended up matching the rate.

[dhari]

I work at one of the big 5 as a mortgage advisor. We have the ability to undercut those brokers. If you can, get them to play against each other.

[Drow]

the thing about private lenders is that you need to do your due diligence before signing up with them.

i love meeting clients who have mortgages at these private lenders. they always want to GTFO because of various reasons. Some of the things i've heard are :

-requesting a mortgage statement costs money
-renewing your money costs money
-hidden fee's left and right
-hard to get help with just a telephone vs. physical branches of big 5 banks

Originally Posted by dhari

I work at one of the big 5 as a mortgage advisor. We have the ability to undercut those brokers. If you can, get them to play against each other.

yea big 5 do have the ability to undercut, but do you really want to...? it sets a bad precedent for future business. you help 1 client match a private lender rate, and then any future dealings with the client / referrals they're going to use the same tactic, and if you don't match... it leaves a bad taste

i always tell them our rates are higher for a reason. you get what you pay for.

[franko]

Originally Posted by Drow

the thing about private lenders is that you need to do your due diligence before signing up with them.

i love meeting clients who have mortgages at these private lenders. they always want to GTFO because of various reasons. Some of the things i've heard are :

-requesting a mortgage statement costs money
-renewing your money costs money
-hidden fee's left and right
-hard to get help with just a telephone vs. physical branches of big 5 banks

yea big 5 do have the ability to undercut, but do you really want to...? it sets a bad precedent for future business. you help 1 client match a private lender rate, and then any future dealings with the client / referrals they're going to use the same tactic, and if you don't match... it leaves a bad taste

i always tell them our rates are higher for a reason. you get what you pay for.

There's a difference between a non-bank, aka: monoline lender, and a private. Private is an industry standard term that refers to a B Lender doing non-prime business at high rates for people with poor credit and/or non-confirmable income.

Any of the major monolines are absolutely fine to deal with, have good customer service and tend to be agressive with rates and keeping customers happy in order to win market share.

If you're renewing it doesn't hurt to talk to a broker and rate compare. Your current lender may have the best rate, they may not. If someone else beats them you can always show your existing lender the rate and ask them to better it.

Also, if your mortgage doesn't secure a collateral charge (secured line of credit) many lenders offer a zero fee transfer (no legal costs), although your existing lender will charge you a discharge fee and document fees (Big 5 banks charge for mortgage payout statements just like almost all lenders, sometimes they even are "accidentally" slow issuing the payout statement to the new lender so the client misses their maturity date to transfer).

Additionally if you have or previously had a High Ratio mortgage where you as the client paid a mortgage insurance fee (even if you're loan to value is now below 80%, as long as you haven't refi'd since then) you can transfer it qualifying at contract rate (around low 2% right now), instead of the now federally mandated benchmark rate of 4.64% which opens up some options for some people that are at the limit for debt servicing.

To say you get what you pay for at a big 5 is a bit of a naieve statement as there are many monoline options, as well as non big 5 banks, that offer comparable or better service and products. Like anything in life it generally pays to shop around. Rates move around all the time, there isn't one lender that is always better.

Everyone gets clients who don't like their current lender, if you move around in the industry you'll find it's pretty much the same wherever you are (monolines fund their mortgages with Big 5 funds as investors anyway).

[Drow]

Originally Posted by franko

There's a difference between a non-bank, aka: monoline lender, and a private. Private is an industry standard term that refers to a B Lender doing non-prime business at high rates for people with poor credit and/or non-confirmable income.

Any of the major monolines are absolutely fine to deal with, have good customer service and tend to be agressive with rates and keeping customers happy in order to win market share.

If you're renewing it doesn't hurt to talk to a broker and rate compare. Your current lender may have the best rate, they may not. If someone else beats them you can always show your existing lender the rate and ask them to better it.

Also, if your mortgage doesn't secure a collateral charge (secured line of credit) many lenders offer a zero fee transfer (no legal costs), although your existing lender will charge you a discharge fee and document fees (Big 5 banks charge for mortgage payout statements just like almost all lenders, sometimes they even are "accidentally" slow issuing the payout statement to the new lender so the client misses their maturity date to transfer).

Additionally if you have or previously had a High Ratio mortgage where you as the client paid a mortgage insurance fee (even if you're loan to value is now below 80%, as long as you haven't refi'd since then) you can transfer it qualifying at contract rate (around low 2% right now), instead of the now federally mandated benchmark rate of 4.64% which opens up some options for some people that are at the limit for debt servicing.

To say you get what you pay for at a big 5 is a bit of a naieve statement as there are many monoline options, as well as non big 5 banks, that offer comparable or better service and products. Like anything in life it generally pays to shop around. Rates move around all the time, there isn't one lender that is always better.

Everyone gets clients who don't like their current lender, if you move around in the industry you'll find it's pretty much the same wherever you are (monolines fund their mortgages with Big 5 funds as investors anyway).

where do i sign up?

[Rallydrv]

my term is up in end of nov/ and i have been shopping around. offered 2.40/5 years fixed (from the bank im currently with) . cant decide if i should wait or go along w/ offered. as i am before my 120 days.

if i stick ,i can get new rates right away. or shop around closer to renewal date (so i would pay no penalty)
also,cad fed chair said chances are rates will go up. in july - could be just talk..