Tim's Mortgage News / Rates and FAQ's

[TimLacroix]

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I've got a variable mortgage at prime - 0.7% that is up for renewal in July. Should I try to get the same from my bank, or look at something else?

Hi z24_wheels - we would love to assist with your renewal and discuss options between variable and fixed. I'll send you a PM.

[chongkee_]

I'm up for renewal in October.
How early should I be looking?

[TimLacroix]

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I'm up for renewal in October.
How early should I be looking?

Never too early to start the process... depending on your current lender, we can secure rates 120 days in advance. Some earlier... so if you are interested in reviewing options, we can get connected? ~ Tim

[pheoxs]

HBSC showing 2.29% on 5 year fixed on their site. Seems too good to be true?

https://www.hsbc.ca/mortgages/

[msommers]

Fine print there:

High Ratio Mortgage is when customer obtains a personal mortgage with mortgage default insurance with HSBC Canada. Click terms and conditionsterms and conditions This link will open in a new window for more details

[Strider]

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HBSC showing 2.29% on 5 year fixed on their site. Seems too good to be true?

https://www.hsbc.ca/mortgages/

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Fine print there:

High Ratio Mortgage is when customer obtains a personal mortgage with mortgage default insurance with HSBC Canada. Click terms and conditionsterms and conditions This link will open in a new window for more details

2.29% for CMHC insured, 2.49% for others
HSBC is absolutely shit to deal with, but it's better than getting into a cheap rate with bona-fide sale clause.
Best is just to use their rate as leverage to get a better rate from your current lender on renewal.

[sabad66]

BoC cut rates half a point today. Any guesses if rates heading lower than the 2.29% HSBC deal? I have a renewal on a rental property coming up in May so starting to think about this now

[TimLacroix]

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BoC cut rates half a point today. Any guesses if rates heading lower than the 2.29% HSBC deal? I have a renewal on a rental property coming up in May so starting to think about this now

Yes, this is great news for variable rate mortgage, student loans etc. The BIG question is going to be how much of the 0.50% is going to be passed on to consumers by the lenders? The full 0.50% or just 0.25%... will will know this information within the next day or 2.

Note the 2.29% is not available for rental properties. Owner Occupied homes.

[killramos]

2.29 is only for High ratio requiring insurance anyway. The standard rate for that HSBC mortgage at 2.49 sounds pretty par for the course with a 50 point drop. Expect many to drop to that level ish within the week.

[pheoxs]

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Yes, this is great news for variable rate mortgage, student loans etc. The BIG question is going to be how much of the 0.50% is going to be passed on to consumers by the lenders? The full 0.50% or just 0.25%... will will know this information within the next day or 2.

Note the 2.29% is not available for rental properties. Owner Occupied homes.

0 Chance its 0.5. My guess is 0.3 or 0.25. Since 2008 the gap between the posted rate and the bank rates just keeps widening. Gotta pad those profits.

[sabad66]

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Yes, this is great news for variable rate mortgage, student loans etc. The BIG question is going to be how much of the 0.50% is going to be passed on to consumers by the lenders? The full 0.50% or just 0.25%... will will know this information within the next day or 2.

Note the 2.29% is not available for rental properties. Owner Occupied homes.

So you don’t see fixed rates dropping further cuz of the rate cut? I know it’s been mentioned that they aren’t directly correlated but anecdotally I feel like there is some connection

Also generally speaking if hypothetically I got a rate hold today from hsbc at 2.49, could I just hang on to that without finalizing/signing and wait a couple of months to see if they drop further? Renewal Date is around mid May so thinking about a rate hold now and then late April re-assess to see if anything better is available. Sorry for the maybe dumb question but this will be my first renewal so not sure what to expect

[TimLacroix]

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So you don’t see fixed rates dropping further cuz of the rate cut? I know it’s been mentioned that they aren’t directly correlated but anecdotally I feel like there is some connection

Also generally speaking if hypothetically I got a rate hold today from hsbc at 2.49, could I just hang on to that without finalizing/signing and wait a couple of months to see if they drop further? Renewal Date is around mid May so thinking about a rate hold now and then late April re-assess to see if anything better is available. Sorry for the maybe dumb question but this will be my first renewal so not sure what to expect

Yes, we are expected rate cuts on the fixed side as the 5-year bond yield has been declining each day... we should see these cuts on fixed happening in the next week or so.

Yes, if you have a rate hold, that is great. By signing does not lock you with HSBC as you can continue to make changes... if you are planning to change lenders or use a broker, they will need approx 3- weeks prior to closing to get everything secured. If it is a renewal or switch, I would suggest giving 4-weeks to complete paperwork.

If you have questions, please PM, call / text (403-479-0066) or email, [email protected]... I would be happy to assist, answer questions and or guide you through next steps.

Tim

[gmc72]

Well, that 2.29 from HSBC is a hell of a lot better than the 2.84 I was quoted from BMO for a new mortgage. Maybe I'll go back to them and see if they can beat it.

[killramos]

RBC has cut its prime rate by the full .5%

I would expect all other lenders to follow suit.

Having an extra couple bucks in interest savings never hurts.

https://www.bnnbloomberg.ca/rbc-cuts...move-1.1400320

[pheoxs]

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RBC has cut its prime rate by the full .5%

I would expect all other lenders to follow suit.

Having an extra couple bucks in interest savings never hurts.

https://www.bnnbloomberg.ca/rbc-cuts...move-1.1400320

Scotia as well. Wow, I'm surprised actually

[msommers]

I just renewed online through Scotia. 2.59% 4-yr fixed. I couldn't switch lenders and this was literally click a couple buttons. Much better than the 3.15 I was paying before...

[ExtraSlow]

Am I reading right that variable mortgages right now are higher than fixed? 3.45 prime minus 0.6 or 0.75 is still worse than 2.45. I think. @Mar , can you check this for me?

[killramos]

Give it a few days to stabilize after the rate drops, gonna be cloudy for a while.

Read an interesting report this morning from a leading BB bank that 2 more quarter point rate drops are expected, one at the scheduled meeting in a couple weeks, then another at April’s meeting. Which would be why current variable rates are printing higher than fixed, the banks think Rates are going down so they are willing to market lower fixed rates more aggressively.

[ExtraSlow]

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Give it a few days for Tim's sexy-sounding assistant to finish your application.

I will follow this advice.

[TimLacroix]

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0 Chance its 0.5. My guess is 0.3 or 0.25. Since 2008 the gap between the posted rate and the bank rates just keeps widening. Gotta pad those profits.

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Well, that 2.29 from HSBC is a hell of a lot better than the 2.84 I was quoted from BMO for a new mortgage. Maybe I'll go back to them and see if they can beat it.

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Am I reading right that variable mortgages right now are higher than fixed? 3.45 prime minus 0.6 or 0.75 is still worse than 2.45. I think. @Mar , can you check this for me?

For most of 2019 and currently, the fixed rates have been lower than variable. With Prime being lowered, the variable is now closer to fixed rates.

If you have discounts of 0.60% or higher, there could be an opportunity to get better rates and save money... even if it meant paying a penalty. PM if you would like to chat.