Mortgage interest rate

[vkesava1]

Hi Everyone,

i am hoping some body can advise me about the best thing that i should do ?

i am building a house right now and the house will be ready in June 2015. Currently i am pre-approved with RBC ( did the pre-approval back in oct 2014) and they offered me an umbrella rate of 3.69 and they are holding up for 1 year ( which would be until oct 2015). i have also been told by RBC agent that i will be able get the market rate at the time of possession,

with the markets fluctuating right now, i contacted the agent saying i should get a better rate, but he advised me that we cannot change anything until 90 days before possession or so ? is that true ?

Is it a good idea to contact a different bank and get hold of a rate better than 3.69 that was provided by RBC ? I am confused.

Also how often does Bank of canada changes their overnight rate ? do they change it very often ?

please help me, i am confused right now. Any help would be much appreciated,

i would like thank u for your time and help,

Thanks.

[syb65]

That is way to high. Shop around, depending on which kind of mortgage u have, u should be able to get in the mid to high 2 percent. Go to td.

[syb65]

Kind meaning fixed or variable, and length of terms. Right now, I either have a fixed variable 5 yr term at prime(3 %) - 0.55 % ,or 4 yr term fixed rate at 2.69%. Still undecided. Do a little research and shopping which will save u tens of thousands of dollars.

[msommers]

Definitely shop around. Banks will tell you they can't do anything until you present a rate from different bank or lender, and all the sudden they'll "try to see what they can do."

[Boat]

You should find Todd Purcell on here. He's a forum sponsor mortgage broker. Banks offer silly vanilla rates to their customers. If you work with a broker they can get you an excellent rate much lower than what your bank advisor is peddling. Also there is a chance your broker can get you a low rate with the bank you want. Todd helped me last year to get my mortgage and I ended up with a 3 year fixed at around 2.75. Now the rates are even better as mentioned by syb.

[tpurcell4]

vkesava1,

The standard ratehold period is 120 days, which as of today would be May 28th. Soon you will be eligible for some of the best rates on the market, or at least rates such as the 2.84-2.89% 5 year fixed (there are some very low quick close specials on the market as well).

What we would recommend at this time is getting a ratehold for 120 days should your possession happen to come earlier (its rare but does happen), and then in a month from now we would extend your ratehold until the end of June at the rates that are available at the end of February. Given the way the market is going currently these low rates should hold for a few months.

And thank you Boat!

Should you have any questions please PM me!

Todd

[vkesava1]

Originally posted by tpurcell4
vkesava1,

The standard ratehold period is 120 days, which as of today would be May 28th. Soon you will be eligible for some of the best rates on the market, or at least rates such as the 2.84-2.89% 5 year fixed (there are some very low quick close specials on the market as well).

What we would recommend at this time is getting a ratehold for 120 days should your possession happen to come earlier (its rare but does happen), and then in a month from now we would extend your ratehold until the end of June at the rates that are available at the end of February. Given the way the market is going currently these low rates should hold for a few months.

And thank you Boat!

Should you have any questions please PM me!

Todd

Thanks Todd, for your help.

Just wondering, Does Bank of canada changes rates very often ? How long it usually before they make a change ?

Are they going to increase the rate anytime soon ?

Also since i got a approval from RBC, if switch bank will there be any Legal issues or so ?

[tpurcell4]

^^
The bank meets roughly every 2 months. Their next meeting is in March. This is first time the bank of canada has changed it rate in nearly 5 years. But every time they meet depending on the economic situation it could change.

TD released a prediction a couple of days ago that the bank of canada may lower its rate again in March. It will likely be a couple of years before rates start to go up based on current indicators.

If you have not yet closed with RBC (taken possession) then there should not be any legal issues. I would be happy to review your approval to confirm this for you as well.

Please PM and we can sort out further details!