Mortgage Agreement Signed - Lower Interest Rate Now

[WWJAI]

So I purchased a home and am set to take possession at the end of this month. I have already signed the mortgage agreement a couple weeks ago and the mortgage rates with the financial institution (lender) have now lowered. I have not closed yet on the home purchase.

Does anyone know if I'm stuck with the higher interest rate or should the lender be able to provide me with the lower rate?

Just wanted some facts before contacting the lender. Thanks.

[chkolny541]

http://forums.beyond.ca/st/357605/2-3-of-alberta-home-buyers-wish-they-had-waited-longer-to-buy-their-1st-home/

you are the 2/3 haha.

[sputnik]

Why are you asking Beyond and not your lender?

Most lenders will set the rate to the day (or close to) when the deal closes.

[Xtrema]

When I renewed, RBC agreed on 3.24% in June.

Aug roll around and they lowered it to 3.14%.

[A790]

tpurcell might be able to offer some advice...

[tpurcell4]

Depending on your lender some will automatically do a 120 day look back and give you the best rate they offered from the time your application was submitted (so if rates were lower prior to your submission and you are closing before 120 days the look back would only go to when it was submitted). Other lenders will readjust the rate a couple of days prior to closing if rates are lower. But for most lenders your broker should be actively watching rates on your behalf and if the rate lowers with the lender you are with they would be requesting a rate drop (some lenders will only allow 1 or 2 of these drops prior to close).

Basically you need to contact your banker or broker depending on how you went and find out if you have the lower rate or not.

I would do sooner than later as the bond yields are up this week and we are likely going to see rates go up a bit.

Cheers,

Todd