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Thread: Mortgage Renewal - WWBD?

  1. #41
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    Quote Originally Posted by suntan View Post
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    Really? Every VRM I had was a VRM. Payment stayed the same within a fairly large interest increase, increases past that threshold would cause the payment to go up. It was actually based on how much additional interest the increase would create.

    And guys, if you go for the variable rate, it's extremely rare that even with prime rate increases that your rate would end up above any term equivalent fixed mortgages then being offered.
    If it’s a VRM, it’s a VRM… but both are advertised together under “variable”… from what I remember in the broker channel, it was only TD doing a VRM… the rest (especially the monolines) are ARMs… and I’m surprised you are VRM as I thought you were a Think Financial guy?

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    Quote Originally Posted by ercchry View Post
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    If it’s a VRM, it’s a VRM… but both are advertised together under “variable”… from what I remember in the broker channel, it was only TD doing a VRM… the rest (especially the monolines) are ARMs… and I’m surprised you are VRM as I thought you were a Think Financial guy?
    I haven't had a VRM in ages unfortunately.

    TF did have a 0.98% rate VRM that I wanted, but wife didn't want that one. Went for 1.89% instead. Bleh. They also completely fucked up the renewal in basically every imaginable way possible.

    My first VRM had a 0.25% rate for a while. Good times.

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    Quote Originally Posted by nzwasp View Post
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    We were supposed to renew in June but ended up renewing yesterday for 2.59% for 5 years. We were previously on 2.44% and our lender gave us a discount on our penalty too.
    @OP if you needed any more evidence that variable is the right choice, here it is. If you want any type of advice just think "what would nzwasp do?", then pick the opposite thing.

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    Quote Originally Posted by ercchry View Post
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    No one is losing their house if rates raise on a variable/adjustable… 3 month interest penalty can be absorbed into a straight transfer most of the time ($3k limit on increase before it’s considered a refi) and it’s super easy to move. Only catch here would be if it’s one of “those” situations where they feel strongly that they might not be able to prove enough income to qualify for the loan again, but also the bump to the less than ideal fixed rate the current lender offers would tip them over the edge.

    Depending on the equity and other debt obligations this could actually enhance their situation too if they take the time to refi (rates are not as good though as a straight transfer)


    The banko folks don’t need to worry… the only variable’s they’re likely to even qualify for are P+X% HELOC/secured credit cards
    well shows what I know. If that's true, then there's nobody who should get fixed.
    Quote Originally Posted by rage2 View Post
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    I almost shat myself after eating way too much at lunch with @killramos so ya, we can start the diaper thread now.

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    Quote Originally Posted by ExtraSlow View Post
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    well shows what I know. If that's true, then there's nobody who should get fixed.
    Fixed rate mortgages are an insurance product with built in premiums. It’s that simple.

    I currently have a VRM with RBC, just as a data point for errchry if he cares.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    Quote Originally Posted by Kloubek View Post
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    That's likely true. But absorbing a 5 point increase is a lot better than absorbing a 50 point increase. It just means I need to keep an eye on interest trends from time to time. No biggie.



    First person I noticed that went fixed. That's a good rate though. Who did you go through?

    The fact is as well that I have stellar credit, and my wife's is quite good too. We both have stable jobs paying 6 digits and have almost a half million of equity in the home. If anyone should get a good rate, I would imagine it should be us...
    We were with mcap and continued with them

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    Quote Originally Posted by Buster View Post
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    This is the assumption that people make that is incorrect. If interest rates go up, the fixed rates will already have risen past where you will want to be locked in. People are used to buying products, not participating in markets because people rarely encounter markets in their daily lives. If you get a mortgage you are being forced to participate in a market, with all of the fun that entails.
    Am I guilty of this?
    I was led to believe that I could lock the latest variable rate that I had in the event that I turned into a pussy and panicked. That's different from switching to the latest fixed rate which would be much shittier.
    I bet you're right...
    Not that this option was a deciding factor for me anyway.

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    ^^^depending on the lender it’s probably even worse… going to be their POSTED rate… probably worth paying the penalty and getting a fresh 5yr fixed somewhere else if it gets to that

    Quote Originally Posted by killramos View Post
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    Fixed rate mortgages are an insurance product with built in premiums. It’s that simple.

    I currently have a VRM with RBC, just as a data point for errchry if he cares.
    They, along with CIBC and BMO are not in the broker channel… so I know very little of their offerings.

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    Quote Originally Posted by Kloubek View Post
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    First person I noticed that went fixed.
    I'll be #2. 1.69% 5 year fixed and $3k cash back with HSBC in Oct 2020. At the time, the variable discounts had dried up and the best 5 year variable was 1.60%, so the fixed was almost a no brainer - still hate the punishing penalties that come with breaking a fixed.

    If I was shopping today, definitely Variable.

    Quote Originally Posted by Kloubek View Post
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    The fact is as well that I have stellar credit, and my wife's is quite good too. We both have stable jobs paying 6 digits and have almost a half million of equity in the home. If anyone should get a good rate, I would imagine it should be us...
    You would think so, but sadly high ratio get better rates.

    Also, loyalty is overrated. I've used Intellimortgage, HSBC, ATB, TD, Mortgagepal, ING, National Bank. The process is largely the same with any one of them. Take a quick poke in the Mortgage rates thread on RFD as well. That's where I found my HSBC mortgage (cheaper than anything posted at the time) - it was a new branch opening promo in Mississauga and we handled everything over email.
    Last edited by Strider; 01-14-2022 at 11:02 AM.
    Originally posted by max_boost
    Hey baller, any problem money can solve is no problem at all. Don't sweat it.

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    I've never bothered to look closely at TN/TF's variable rate mortgages, they do indeed seem to be ARMs.

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    ^^customer paid insurance gets best rates… so if he was high ratio and has never refinanced he would get the best rates… but also once you get a certain threshold of equity they’re back on par with HR… usually 35-40% equity or better

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    My wife only ever trusts fixed... however if the rate for example does go up 4x or 1% variable rate would be the same as the fixed rate I am on now so im not worried. Although I suspect Canada would be screwed if the mortgage rate goes that high like @suntan said. We dont have much left on our mortgage - and hoping to knock it off within 5 years. I am not too concerned if it was a good deal or not regarding the penalty. Mcap said they would only waive the penalty within 90 days of renewal.

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    With inflation where it is right now, I'd think it would be suicide for them to increase interest rates that rapidly. We're heavily influenced by the US and they just signed another 20 trillion worth of debt.
    It is now to a point where people and government rely on the low interest rates. The days of high interest rates are done IMO. Both Canada and the US would be bankrupt if interest rates rise too rapidly

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    If that's all you have left the rate really doesn't make too much of a difference since the principal is so small.

    Now those doofuses with $1MM mortgages... They'll be sweating bullets come renewal time.

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    There you have it. nzwasps wife says fixed.

    That’s all anyone should need to know.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
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    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    Quote Originally Posted by killramos View Post
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    There you have it. nzwasps wife says fixed.

    That’s all anyone should need to know.
    Only thing that could trump that would be his MIL.
    Originally posted by max_boost
    Hey baller, any problem money can solve is no problem at all. Don't sweat it.

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    Quote Originally Posted by Asian_defender View Post
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    With inflation where it is right now, I'd think it would be suicide for them to increase interest rates that rapidly. We're heavily influenced by the US and they just signed another 20 trillion worth of debt.
    It is now to a point where people and government rely on the low interest rates. The days of high interest rates are done IMO. Both Canada and the US would be bankrupt if interest rates rise too rapidly
    Basically the only way to defeat inflation is to raise rates. And they have to start sooner than later, and they have to raise rates quickly.

    Canada has much less ability to raise rates without severe pain occurring because our currency and economy sucks.

    Just take a look at what happened in the late 70s with Trudeau Sr.'s gov't.

    If you wonder why so many "conservatives" are so against government spending to lift economies, that period of time is reason #1. It took 20 years for rates to start normalizing.

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    Quote Originally Posted by killramos View Post
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    There you have it. nzwasps wife says fixed.

    That’s all anyone should need to know.
    You have given out too much Reputation in the last 24 hours, try again later.

    - - - Updated - - -

    Quote Originally Posted by suntan View Post
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    Basically the only way to defeat inflation is to raise rates. And they have to start sooner than later, and they have to raise rates quickly.

    Canada has much less ability to raise rates without severe pain occurring because our currency and economy sucks.

    Just take a look at what happened in the late 70s with Trudeau Sr.'s gov't.

    If you wonder why so many "conservatives" are so against government spending to lift economies, that period of time is reason #1. It took 20 years for rates to start normalizing.
    You assume inflation is not beneficial to gov'ts.

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    Inflation caused by currency devaluation like what we're seeing now? That kills ruling parties. Asset value deflation, permanent price increases to staple goods, a very high chance of recession and withdrawal of foreign goods.

    It's good for 'berta though.

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    When I say thats all i have left I mean I have 350k left. But in the last 5 years I paid off 200k in a low oil price environment.

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