What are the current mortgage rates being handed out?

[88CRX]

Just wonder what sort of rates are being handed out lately?

Looking into both fixed/close as well as open variable rates.

[SteveMo600]

I got prime minus half. I think that's fairly competitve. Given the crazy economy these days, I'd suggest going with a bank rather than a private broker.

[rc2002]

Just read an article in the paper today. TD is now 1% above prime.


http://www.reportonbusiness.com/serv...l_gam_mostview

LORI MCLEOD

Globe and Mail Update

October 6, 2008 at 8:46 PM EDT

The latest victims of the growing financial crisis could be the standard discount available to consumers on variable mortgages, and home equity loans at prime.

In a move expected to be followed by other banks, all of which have been stung by higher funding costs, TD Canada Trust is raising rates on both types of loans, effective Oct. 7.

Rates on these products will rise to 5.75 per cent, a percentage point above the prime rate. Only last week, TD eliminated the discount on its variable rate mortgages, offering them at the prime rate of 4.75 per cent. During the housing boom of the past several years, consumers could often get their bank to drop the rate by half or even up to a full percentage point.

“While TD Canada Trust has endeavoured to not pass on the increases in rates to its consumers, this change reflects steadily increasing costs of funds in the current economic environment,” the bank said in a statement.


The percentage point increase raises the term interest cost on a $250,000 variable rate mortgage by $12,247.22 over five years, according to Royal Bank of Canada's online mortgage calculator. The difference is based on a 25-year amortization, a variable rate mortgage with a five-year term and bi-weekly payments. On that basis, the bi-weekly payment amount rises to $725.90 from $657.83.

The credit crisis and economic uncertainty have caused banks to stockpile their cash. That's driving up their short-term cost of borrowing from one another, and means margins on variable rate mortgage products are shrinking.

Rates on fixed-term mortgages went up last week too, as banks have passed on fewer of their savings from falling bond yields to consumers to consumers.

“The deterioration of global credit markets is beginning to squeeze the ability of even the strongest of financial institutions to raise longer-term funds, which could limit the provision of longer-term credit in Canada to businesses and households,” federal Finance Minister Jim Flaherty said in a statement Monday.

“Hopefully this isn't a permanent shift, but a short-term reaction to conditions the likes of which we really haven't seen before,” said Gary Siegle, regional manager at mortgage broker Invis.

With a discount, some customers can still get five-year, fixed-rate mortgages at 5.55 per cent, meaning a bi-weekly payment of $707.66 on a $250,000 mortgage amortized over 25 years. This means those looking for peace of mind in the current market turmoil aren't paying a premium to lock in, Mr. Siegle said.

[88CRX]

Originally posted by SteveMo600
I got prime minus half. I think that's fairly competitve. Given the crazy economy these days, I'd suggest going with a bank rather than a private broker.

I currently have a rate hold at royal bank for 5.3% on a 5 year fixed/closed

Was just wondering if it would be worth my time to have a broker look into further.

I didn't put much thought into the shitty world economy effecting a where a broker might get the mortgage from

[dezmarez]

Originally posted by 88CRX


I currently have a rate hold at royal bank for 5.3% on a 5 year fixed/closed

Was just wondering if it would be worth my time to have a broker look into further.

I didn't put much thought into the shitty world economy effecting a where a broker might get the mortgage from

that is a very good rate for fixed considering prime is 4.75

[QuasarCav]

Originally posted by 88CRX


I currently have a rate hold at royal bank for 5.3% on a 5 year fixed/closed

Was just wondering if it would be worth my time to have a broker look into further.

I didn't put much thought into the shitty world economy effecting a where a broker might get the mortgage from

I would take that if offered. I am thinking of converting my 5 year variable to closed but I am not 100% sure. I just would like to have some stability in my remaining mortage even at a .5 - .75 rate increase.

[SteveMo600]

Originally posted by 88CRX


I currently have a rate hold at royal bank for 5.3% on a 5 year fixed/closed

Was just wondering if it would be worth my time to have a broker look into further.

I didn't put much thought into the shitty world economy effecting a where a broker might get the mortgage from

I'm on a variable open at prime minus 0.5% w/ CIBC. It's all about your risk tolerance in regards to fixed and variable.

I'm fine with a floating rate as I think signing a fixed involves too high of a premium given where prime is. I would highly suggest open if you anticipate having extra cash that want to dump on your mortgage. If your mortgage is pretty much at the point where you can just afford it, a closed will suffice.

I would much rather a bank mortgage in an economic crisis than any private broker.

[88CRX]

What I take from that article is that closed/fixed mortages are uneffected at this time, correct?

[lint]

Originally posted by QuasarCav
I would take that if offered. I am thinking of converting my 5 year variable to closed but I am not 100% sure. I just would like to have some stability in my remaining mortage even at a .5 - .75 rate increase.

you mean convert your 5 year variable to a 5 year fixed. Open and closed has nothing to do with rates.

[kenny]

Originally posted by 88CRX
What I take from that article is that closed/fixed mortages are uneffected at this time, correct?

No, because a "fixed-rate" mortgage means the interest rate is fixed at whatever you signed at for the term.

A Closed mortgage is simply a mortgage that you cannot pay-off completely during the term, while an open mortgage is one you can pay off completely before the term is up.

[Tik-Tok]

Originally posted by kenny


No, because a "fixed-rate" mortgage means the interest rate is fixed at whatever you signed at for the term.

A Closed mortgage is simply a mortgage that you cannot pay-off completely during the term, while an open mortgage is one you can pay off completely before the term is up.

You can still pay off a closed mortgage, and it usually costs you a whopping 3 months of interest

[kenny]

Originally posted by Tik-Tok


You can still pay off a closed mortgage, and it usually costs you a whopping 3 months of interest

Haha, yes thats true. I forgot to say "without penalty", but as you said the penalty is pretty minor anyway.

[Tik-Tok]

Originally posted by kenny


Haha, yes thats true. I forgot to say "without penalty", but as you said the penalty is pretty minor anyway.

I'm seriously considering this right now. I mean with my mortgage due in 8 months, I could pay the 3 months interest and get a decent rate, right now, but with the economy going to shit, if I wait until the term is up, it could be 1-1.5% higher by then, which will cost me 4 times as much over a 5 year term, then if I just payed the penalty now.

hrumph. decisions decision.

[88CRX]

Originally posted by kenny


No, because a "fixed-rate" mortgage means the interest rate is fixed at whatever you signed at for the term.

A Closed mortgage is simply a mortgage that you cannot pay-off completely during the term, while an open mortgage is one you can pay off completely before the term is up.

Sorry, I meant if I'm looking to sign a fixed rate mortgage in the next couple months the rates haven't gone up yet?

I haven't signed it yet.... so it still could move up or down.

[spikerS]

i will be holding off. I still have my pre-approval for prime -0.6. but all the people in the know that I have talked to, all of them, with the exception of one, is expecting prime to fall.

The austrailian banks just lowered prime by 1%, and there is talks of the USA, Canada, Britain, UK, and the EU of getting together and trying to drop prime even lower.

I don't think i would jump on locking in just yet.

[tm88]

50 basis pts is what they are speaking of on BNN right now.

[88CRX]

Originally posted by spikers
i will be holding off. I still have my pre-approval for prime -0.6. but all the people in the know that I have talked to, all of them, with the exception of one, is expecting prime to fall.

The austrailian banks just lowered prime by 1%, and there is talks of the USA, Canada, Britain, UK, and the EU of getting together and trying to drop prime even lower.

I don't think i would jump on locking in just yet.

Just what I wanted to hear.

[kenny]

BoC is expected to lower the prime rate (upwards of 100 basis points by end of the year), but that doesn't guarantee the banks will follow suit.

[Crymson]

I got prime minus 0.6% from Royal Bank a few weeks ago on a variable mortgate. Is that good?

[blownz]

Originally posted by Tik-Tok


I'm seriously considering this right now. I mean with my mortgage due in 8 months, I could pay the 3 months interest and get a decent rate, right now, but with the economy going to shit, if I wait until the term is up, it could be 1-1.5% higher by then, which will cost me 4 times as much over a 5 year term, then if I just payed the penalty now.

hrumph. decisions decision.

If you are re-signing for 5 years with the same bank they should have no problem waiving your fee for terminating your old term. They will just likely put in a clause stating that if you terminate the new contract before the end of its term you will pay a penalty on both. I did this with RBC before.