Mortgage Rates

[PearlTSX]

Hey guys,

Just a quick question for you money gurus...

I'm currently building a house and have a completion mortgage. The rate I was approved for was 4.95%

My house won't be done until the end of November (at best) but they said they can only hold my rate for 120 days.

Is there any way I can get them to hold the rate until my house is ready? Interest rates just keep going up and up.

Thanks
D

[HRD2PLZ]

Most banks can offer a "Builder's Mortgage" where they offer you a higer interest rate and hold it for an extended amount of time ( up to 2 years depending on the lender).

You may want to PM D. Dub, he is a mortgage broker

[PearlTSX]

Originally posted by HRD2PLZ
Most banks can offer a "Builder's Mortgage" where they offer you a higer interest rate and hold it for an extended amount of time ( up to 2 years depending on the lender).

You may want to PM D. Dub, he is a mortgage broker

Thanks
PMed

[topmade]

My bank said the same thing, only hold the rate for 120 days. That was back in October and our possession is this week, well over 120 days and they gave us the same rate still. This was TD bank.

[TDA]

You need to talk to someone else, TD bank was able to hold my rate for 2 years, BMO 1 year, HLC 1 year......etc...

And these are good, competitive rates too.

[civicguy2002]

Yeah TD has extended the rate hold on my condo as well. I work for a home builder and our mortgage guy said that almost all banks should hold your rate, essentially the bank borrows the money the day you get approved, so they took that money out at that days rate.

Should be no problem.

[JordanLotoski]

go variable..

[roopi]

Originally posted by MIWYFSHOT
go variable..

Why do you say? You feel the rates are going to be coming down?

[D. Dub]

Originally posted by civicguy2002
Yeah TD has extended the rate hold on my condo as well. I work for a home builder and our mortgage guy said that almost all banks should hold your rate, essentially the bank borrows the money the day you get approved, so they took that money out at that days rate.

Should be no problem.

Banks SHOULD hold the rate if you ask...but they won't always do so.

[PearlTSX]

Originally posted by roopi


Why do you say? You feel the rates are going to be coming down?

Does anyone think the rates are going to come down? Or are they going to keep rising through the summer?

[D. Dub]

All indications and economic predictions point to a gradual 0.5 to a 1 point raise over the next year.

[Mazstyle]

I just got a mortgage, and from people I've talked to <mortgage brokers and bankers> they all predict rates will be rising for a while. 4.95 is really good and I'd recommend you do whatever it takes to keep that and lock it in for at least 5 years if not 7.

[Vertigo]

My sources tell me they're expecting it to either flatten out or slightly drop around August 2007. Many of the investors I speak to regularily are sticking with variables (obviously there are other reasons here such as no discharge penatlies etc) however they're still choosing variables because of the first reason.

Most of the time 1st time buyers like the stability of a fixed rate mortgage. In this case, check around, then go back to your bank (since they likely have the paperwork complete and a portion of your money to the builder as it is). They should be able to hold it a little longer.

For what it's worth, if you're building new go with a financial institution that will hold for up to 2 years as previously stated. A lot of the time their rates aren't any more (and sometimes less) than some major banks.