Mortgage renewal

[z24_wheels]

My fiance's mortgage needs to be renewed at the end of this month; the problem is that we might be moving in the next few months out of the country. Are there any options out there to get a very short term mortgage until we find out about the possibility of leaving the country? I am very new to mortgages, etc. sorry if this is a stupid question

[BigMass]

Originally posted by z24_wheels
My fiance's mortgage needs to be renewed at the end of this month; the problem is that we might be moving in the next few months out of the country. Are there any options out there to get a very short term mortgage until we find out about the possibility of leaving the country? I am very new to mortgages, etc. sorry if this is a stupid question

why not just ask your mortgage broker?

[broken_legs]

Maybe he just wants some ammunition to go and talk to a mortgage specialist with so he gets the best deal for his fiance instead of making a decision with limited information and options that the mortgage broker presents.

Brokers get paid when they sign people up for mortgages, not when people avoid mortgages.


That being said I don't really know what the options are but I am interested to find out.

[FishPoo]

You should be able to get an OPEN variable or a fixed rate mortgage.

The main feature would be the ability to pay off the whole amount (assume you'd be selling the place) without penalty.

Each mortgage can be slightly different, but as long as you have the option to pre-pay the full amount without penalty, you should be good, and again you should talk to a broker or a bank.

[gkb]

I would go with a variable rate open mortgage. This way you can pay it out at any time without penalty. It doesn't matter how long the term of the mortgage is as it is totally open. You can also get 6month or 1yr fixed rate open mortgages but the interest rates on those types of products are very high!

PM me if you want more info.

[z24_wheels]

Excellent info re: no penalty on paying the full amount, thank you!

I did call the bank to quickly discuss what the options were. I was told the bank could offer us a 1yr open mortgage at 9.1% (think this was the current variable rate) and that way we could sell at any time with no penalty. If we stay in the country, we can quickly renegotiate for a better rate. I was just interested in what others had to say here. I also have a call into a broker today to see if there are other options. Thanks for your assistance guys!

[bignerd]

Current variable rate is NOT 9.1% that is probably a fixed open rate. Variable is like 5.25% right now and is also called "Prime". You are better off to go with a Variable Open as the interest rates are still likely to go down, meaning you rate could go down as well. Don't let the bank trick you into a high rate saying the mortgage is still open.

[el-nino]

call me i can help her out. 9.25 open is a 1 year open. I can get a much lower and much better product.
PM me your info

[z24_wheels]

Sorry, I got my terminology mixed up. They said they could do 9.1% in a 1 yr fixed open mortgage. I didnt ask about an open variable, can they do a 6 month in that as well?

Have you guys heard about a line of credit mortgage? A friend of the family mentioned it as an alternative. She also suggested we get "title insurance".

[rage2]

There are 6 month mortgages. I've done it before.

[Darkane]

OP: Scotiabank is offering 4.75% variable OPEN right now. That's what I just signed up on. Rumor has it another interest drop it coming so variable is the short term option!

[z24_wheels]

Thanks Darkane! That is just the ammo I need to go into TD and get the same rate...with the admin fees waived.

[analbumcover]

I didnt want to create another thread, but i was just approved for a mortgage, and i was given the option of 5.69 fixed rate for 5 years or a variable rate of 4.75% - just wondering what your opinons are on the best option for me.

Thanks in advance

[leec001]

Prime is 4.75% now and your variable should probably be 4.25%.

[canuckcarguy]

Originally posted by analbumcover
I didnt want to create another thread, but i was just approved for a mortgage, and i was given the option of 5.69 fixed rate for 5 years or a variable rate of 4.75% - just wondering what your opinons are on the best option for me.

Thanks in advance

Kind of depends on your situation. The variable rate is obviously cheaper right now, and might get even cheaper down the road. Or it might not. If you're really squeezed, and worried about stable payment amounts, the fixed rate is the way to go. If you have a bit more flexibility, and some rate fluctuations don't scare you, the variable is a good option.

Historically, variable is the best option, but it really does depend on your own financial situation and your ability to absorb higher payments if the rates go up.

fwiw, rates will likely go down in the short term, and probably stay low for a little while, given the current economy. I'd bet on the variable right now...

[blownz]

Originally posted by leec001
Prime is 4.75% now and your variable should probably be 4.25%.

I heard that this morning. Good news for the variable rate guys. This is the first time in the last 3.5 years since I locked in my mortgage that a variable rate would have been better for me. The good part for me is the past 3.5 years my mortgage has been a lot higher than it is now so the savings for the first part should easily outweigh the extra costs now even if it stays that low or lower for my last 1.5 years. I hope...

[analbumcover]

hmmm ive got a couple things to think about i guess, how probable would it be that the variable rate would go above 6% though?...

[Redlyne_mr2]

Originally posted by analbumcover
hmmm ive got a couple things to think about i guess, how probable would it be that the variable rate would go above 6% though?...

Probable.. never been a fan of variable rates. Your income Im sure doesnt really vary so why would you want your mortgage too? My first mortgage was a one year mortgage, the company was a huge pain in the ass to deal with however once the time to renew came up.

[scortracer]

Because it saves me 86 dollars a month on my pymts. do you not like saving money?

[Godfuader]

Just get a 3yr open variable. All banks run that at prime - x. Prime this morning was 5.25...but will be 4.75 in a day or so.