Mortaage Pre-approval multiple banks

[vkesava1]

Hello there,

Can we get a pre-approval from a different banks and switch the bank when the house is being built ?

since the interest rate( ceiling rate or umbrella rate ) is high with the bank i am working with currently.

Can we switch banks ?

I am worried that with the economy going down in Alberta, the interest rates may go high ?

[TimLacroix]

Hi vkesava1,

Yes you can get preapprovals with multiple banks. Caution is that each bank will want to pull your credit bureau to pre-approve with a rate hold.

I assume this is a build that is going to take longer than 6 months.

There are 12 month rate holds for builds starting at 3.64% (High Ratio) to 3.74% (Conventional)

There are 6 month rate holds for builds starting at 3.09% to 3.19%.

I hate to suggest it but a broker will pull one credit bureau and obtain 2-3 holds if required. We also monitor the rates and advise if and when a change needs to occur.

Note that the 6 or 12 month rate hold at least gives you a worse case scenario if rates rise! ~ Tim

[Disoblige]

Originally posted by vkesava1
Hello there,

Can we get a pre-approval from a different banks and switch the bank when the house is being built ?

Yes. The house is still being built and you don't have a possession date.

Originally posted by vkesava1

I am worried that with the economy going down in Alberta, the interest rates may go high ?

If the economy is going down, the interest rates would stay low.



Edit: Oops, should have said just talk to Tim above :P

[roopi]

If anything rates will go down or stay the same:

Markets eye Bank of Canada rate cut for first time as oil rout damage deepens
http://business.financialpost.com/20...amage-deepens/

[Xtrema]

Originally posted by roopi
If anything rates will go down or stay the same:

Markets eye Bank of Canada rate cut for first time as oil rout damage deepens
http://business.financialpost.com/20...amage-deepens/

Shit, I guess we are in for staycation then as that will mean $CDN will drop under 80cents.

I thought interest rate will go up to match Feds.

[Mitsu3000gt]

Rates will drop if anything. Variable FTW

[ExtraSlow]

Get a broker, maybe the one that posted helpful advice in this thread?

[Feruk]

Originally posted by Xtrema
I thought interest rate will go up to match Feds.

Our rate's a little higher. I don't think we ever went as low.

Also I doubt Ontario cares about Alberta. We can have a miserable time, and they'll still raise rates.

[chkolny541]

Originally posted by TimLacroix
Hi vkesava1,

Yes you can get preapprovals with multiple banks. Caution is that each bank will want to pull your credit bureau to pre-approve with a rate hold.

I assume this is a build that is going to take longer than 6 months.

There are 12 month rate holds for builds starting at 3.64% (High Ratio) to 3.74% (Conventional)

There are 6 month rate holds for builds starting at 3.09% to 3.19%.

I hate to suggest it but a broker will pull one credit bureau and obtain 2-3 holds if required. We also monitor the rates and advise if and when a change needs to occur.

Note that the 6 or 12 month rate hold at least gives you a worse case scenario if rates rise! ~ Tim

Thanks Tim! I was going to post the exact same question as I have a new build currently going and am aiming to take possession in july/aug, hoping to start shopping around for the best rate/plans.

[TimLacroix]

Originally posted by chkolny541


Thanks Tim! I was going to post the exact same question as I have a new build currently going and am aiming to take possession in july/aug, hoping to start shopping around for the best rate/plans.

You're welcome. Would love to assist with your shopping around... let me know if we can be of assistance.

Congratulations!