Tim's Mortgage News / Rates and FAQ's

[ercchry]

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We are definitely considering breaking the term as we want to keep options open on our rental. Apparently MCAP charges 3 months interest to do so which is pretty reasonable given the size of the mortgage.

Uh no, not on fixed... only variable, also I’m assuming “options open” means sale... cause if it’s their value-flex that’s the only way you’re breaking it.

Interest rate differential could be a killer if this truly is the bottom for rates... better than a big bank, but still never fun

[killramos]

Variable for sure. In your case. But also in all cases.

[ExtraSlow]

Shop around. You may find a better variable.

[TimLacroix]

Current Rates to Open Week June 29, 2020

Prime Rate - 2.45%

PROMOTIONS

5 Year Fixed - 1.99% High Ratio Purchase or Switch Only, Owner Occupied, Close in 90-129 days (some restrictions)

5 Year ARM/VRM - 1.75% High Ratio Purchase or Switch Only, Owner Occupied, Close in 90-120 days (some restrictions)

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Full Feature Rates up to 120 day rate protection
Starting at:

3 Year Fixed - 2.19% * High Ratio

5 Year Fixed - 2.19% to 2.24% * High Ratio
5 Year Fixed - 2.24% to 2.44% * Conventional

5 Year ARM/VRM - 2.00% - 2.25%

HELOC Rates Prime +0.50%

Refinance Rates
5 Year Fixed - 2.44% - 2.59%

Call or PM for MORE "UnPublished" rates or other term information.

OAC, some terms and conditions may apply, rates subject to change without notice

[TimLacroix]

Current Rates to Open Week July 6, 2020

Prime Rate - 2.45%

PROMOTIONS

5 Year Fixed - 1.99% High Ratio Purchase or Switch Only, Owner Occupied, Close in 90-129 days (some restrictions)

5 Year ARM/VRM - 1.75% High Ratio Purchase or Switch Only, Owner Occupied, Close in 90-120 days (some restrictions)

-------

Full Feature Rates up to 120 day rate protection
Starting at:

3 Year Fixed - 2.19% * High Ratio

5 Year Fixed - 2.19% to 2.24% * High Ratio
5 Year Fixed - 2.24% to 2.44% * Conventional

5 Year ARM/VRM - 2.00% - 2.25%

HELOC Rates Prime +0.50%

Refinance Rates
5 Year Fixed - 2.44% - 2.59%

Call or PM for MORE "UnPublished" rates or other term information.

OAC, some terms and conditions may apply, rates subject to change without notice

[dirtsniffer]

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Uh no, not on fixed... only variable, also I’m assuming “options open” means sale... cause if it’s their value-flex that’s the only way you’re breaking it.

Interest rate differential could be a killer if this truly is the bottom for rates... better than a big bank, but still never fun

@ercchry Can you explain this to me?
The offer is now 1.89% on the value flex..

As I understand it, if we sell and end the mortgage with the bank having a higher interest rate we pay 3 months interest?

[ercchry]

Yeah that’s IRD.

So say 3yrs left in term. Whatever the 3yr posted term is will be the rate they use. So let’s say it’s 2.5%... 2.5-1.89=0.61%

So open mortgage calculator and change the balance and amortization to 3 years into the future, use 0.61% as rate and add up the interest charges for the next 3yrs

[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?

Please call me to discuss options... 403-479-0066... depends on which bank you are with etc. What is the current offer?

[dirtsniffer]

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Yeah that’s IRD.

So say 3yrs left in term. Whatever the 3yr posted term is will be the rate they use. So let’s say it’s 2.5%... 2.5-1.89=0.61%

So open mortgage calculator and change the balance and amortization to 3 years into the future, use 0.61% as rate and add up the interest charges for the next 3yrs

I thought it was if the rate went down then IRD applied and that if the current rate was higher than mine it would be a 3 month interest penalty.

[TimLacroix]

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@ercchry Can you explain this to me?
The offer is now 1.89% on the value flex..

As I understand it, if we sell and end the mortgage with the bank having a higher interest rate we pay 3 months interest?

This is correct... if the prevailing rates at the time of selling is higher, then you should have an 3 month interest penalty. As mentioned above, they will compare the rate with the remaining time/ term rate. So if higher, than your current rate, 3 month interest should apply.

Feel free to call if you wish to chat. 403-479-0066

[ercchry]

right, yeah... haven’t had coffee yet haha. The entire idea is if they relend that money out and it’s worth less than you agreed to give them for that timeframe then you pay the difference, concept is sound, just reverse that bit haha

[sabad66]

Are there any ways to break a mortgage with a bona fide sales clause without actually selling? I think the answer is No, but asking in case there is a long shot / creative way to do this.

[ercchry]

I know a lot of brokers, the mcap rep has been in the industry a loooong time... have never heard of anyone pulling it off

[sabad66]

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I know a lot of brokers, the mcap rep has been in the industry a loooong time... have never heard of anyone pulling it off

Darn. Assumed that was the case but you never know. I wish my broker pushed me away from that at the time. Saving 10 points seemed like a good idea at the time but with these lower rates these days I’m not too happy I can’t break it. My own fault at the end of the day :Banghead:

For anyone else considering a fixed mortgage with bona fide sales clause - never do it! A lot can happen in 5 years and being stuck sucks balls

[TimLacroix]

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

We can start securing rates 120 days from now... so you can start now. If you wish to chat further, please call/ text 403-479-0066.

[Disoblige]

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For anyone else considering a fixed mortgage with bona fide sales clause - never do it! A lot can happen in 5 years and being stuck sucks balls

This is what I am worried about myself a little bit. Gotta lock down a rate in the next week or so and I'm worried we see much lower rates in the remainder of the years and into next year.

[dirtsniffer]

This is for my rental, so I can't forsee what I would do besides rent it out longer or sell it. I can't see how rates can get any lower than where they are today. Maybe prime could, but the discounts seem to be shrinking to maintain the rate...

[HiSpec]

I currently have the option for early renewal. I received a letter offering me P-0.34% for 3 years variable from CIBC. I believe they can do better. I've heard rates are negotiable. I may have to call Tim for advice.

[dirtsniffer]

Mcap is offering p-.75 for 5 year. Unsure on variable

[Disoblige]

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Mcap is offering p-.75 for 5 year. Unsure on variable

With 20% down or high-ratio?