View Full Version : Mortaage Pre-approval multiple banks
vkesava1
01-14-2015, 04:31 PM
Hello there,
Can we get a pre-approval from a different banks and switch the bank when the house is being built ?
since the interest rate( ceiling rate or umbrella rate ) is high with the bank i am working with currently.
Can we switch banks ?
I am worried that with the economy going down in Alberta, the interest rates may go high ?
TimLacroix
01-14-2015, 05:05 PM
Hi vkesava1,
Yes you can get preapprovals with multiple banks. Caution is that each bank will want to pull your credit bureau to pre-approve with a rate hold.
I assume this is a build that is going to take longer than 6 months.
There are 12 month rate holds for builds starting at 3.64% (High Ratio) to 3.74% (Conventional)
There are 6 month rate holds for builds starting at 3.09% to 3.19%.
I hate to suggest it but a broker will pull one credit bureau and obtain 2-3 holds if required. We also monitor the rates and advise if and when a change needs to occur.
Note that the 6 or 12 month rate hold at least gives you a worse case scenario if rates rise! ~ Tim
Disoblige
01-14-2015, 05:06 PM
Originally posted by vkesava1
Hello there,
Can we get a pre-approval from a different banks and switch the bank when the house is being built ?
Yes. The house is still being built and you don't have a possession date.
Originally posted by vkesava1
I am worried that with the economy going down in Alberta, the interest rates may go high ?
If the economy is going down, the interest rates would stay low.
Edit: Oops, should have said just talk to Tim above :P
roopi
01-14-2015, 05:14 PM
If anything rates will go down or stay the same:
Markets eye Bank of Canada rate cut for first time as oil rout damage deepens
http://business.financialpost.com/2015/01/14/markets-eye-bank-of-canada-rate-cut-for-first-time-as-oil-rout-damage-deepens/
Xtrema
01-14-2015, 05:19 PM
Originally posted by roopi
If anything rates will go down or stay the same:
Markets eye Bank of Canada rate cut for first time as oil rout damage deepens
http://business.financialpost.com/2015/01/14/markets-eye-bank-of-canada-rate-cut-for-first-time-as-oil-rout-damage-deepens/
Shit, I guess we are in for staycation then as that will mean $CDN will drop under 80cents.
I thought interest rate will go up to match Feds.
Mitsu3000gt
01-14-2015, 05:22 PM
Rates will drop if anything. Variable FTW :thumbsup:
ExtraSlow
01-14-2015, 10:05 PM
Get a broker, maybe the one that posted helpful advice in this thread?
Feruk
01-15-2015, 09:08 AM
Originally posted by Xtrema
I thought interest rate will go up to match Feds.
Our rate's a little higher. I don't think we ever went as low.
Also I doubt Ontario cares about Alberta. We can have a miserable time, and they'll still raise rates.
chkolny541
01-15-2015, 05:22 PM
Originally posted by TimLacroix
Hi vkesava1,
Yes you can get preapprovals with multiple banks. Caution is that each bank will want to pull your credit bureau to pre-approve with a rate hold.
I assume this is a build that is going to take longer than 6 months.
There are 12 month rate holds for builds starting at 3.64% (High Ratio) to 3.74% (Conventional)
There are 6 month rate holds for builds starting at 3.09% to 3.19%.
I hate to suggest it but a broker will pull one credit bureau and obtain 2-3 holds if required. We also monitor the rates and advise if and when a change needs to occur.
Note that the 6 or 12 month rate hold at least gives you a worse case scenario if rates rise! ~ Tim
Thanks Tim! I was going to post the exact same question as I have a new build currently going and am aiming to take possession in july/aug, hoping to start shopping around for the best rate/plans.
TimLacroix
01-15-2015, 05:25 PM
Originally posted by chkolny541
Thanks Tim! I was going to post the exact same question as I have a new build currently going and am aiming to take possession in july/aug, hoping to start shopping around for the best rate/plans.
You're welcome. Would love to assist with your shopping around... let me know if we can be of assistance.
Congratulations!
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