Mortgage Renewal - WWBD?

[killramos]

So… elephant in the room…

What’s wrong with your credit?

[suntan]

This quote is hidden because you are ignoring this member. Show Quote

The best rate on this form is the 5 year closed fixed @ 6.19%. If I sign up for that, sell the house in 3 months and then port to new house, I keep the 6.19 rate for remainder of term.

I'm not ruling this out, it just seems like I should be chasing the special offer rates of 5.59 with a whole new mortgage as the next one is a far higher amount.

I have no idea what you're trying to do.

Just get the "SPECIAL RATE" then, and then port the mortgage to the new house. What's the problem?

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

So… elephant in the room…

What’s wrong with your credit?

Nothing is wrong with it. Why do you ask?

This quote is hidden because you are ignoring this member. Show Quote

I have no idea what you're trying to do.

Just get the "SPECIAL RATE" then, and then port the mortgage to the new house. What's the problem?

Special rates are for purchases and switches. Not renewals. Apparently. And I'm trying to renew and sell my house and buy a new one. I guess you didn't read the last two pages of this thread?

[killramos]

Those rates you are quoting sound like “go away” quotes to me

[benyl]

No one with good credit pays those posted rates. They are all negotiable.

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

Those rates you are quoting sound like “go away” quotes to me

RBC posted rate is 6.79% on a 5 year fixed so...... ????

[killramos]

This quote is hidden because you are ignoring this member. Show Quote

RBC posted rate is 6.79% on a 5 year fixed so...... ????

And yet they are quoting you numbers above that, when they offer everyone and their dog discounts to those rates.

But sounds you you have it all figured out. Sign on for 9.8% no water off my back.

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

No one with good credit pays those posted rates. They are all negotiable.

Yes they do. They sign the paperwork after selecting an option on the form and send it back to the bank instead of going into the bank to talk to them. This is why, the last time I renewed, the mortgage specialist said it was always beeter to come in rather than sign an option and send it back. Many people don't come in is what she said.

- - - Updated - - -

This quote is hidden because you are ignoring this member. Show Quote

And yet they are quoting you numbers above that, when they offer everyone and their dog discounts to those rates.

But sounds you you have it all figured out. Sign on for 9.8% no water off my back.

What in the flying fuck are you talking about? I feel like I'm in a Reddit thread. They offered me 6.19% on a 5 year fixed. That's lower than 6.79 the last time I checked.

[suntan]

This quote is hidden because you are ignoring this member. Show Quote

Nothing is wrong with it. Why do you ask?



Special rates are for purchases and switches. Not renewals. Apparently. And I'm trying to renew and sell my house and buy a new one. I guess you didn't read the last two pages of this thread?

Okay, so switch your mortgage to RBC and then sell your house and buy another house. What exactly is the problem?

[msommers]

This quote is hidden because you are ignoring this member. Show Quote

Yes they do. They sign the paperwork after selecting an option on the form and send it back to the bank instead of going into the bank to talk to them. This is why, the last time I renewed, the mortgage specialist said it was always beeter to come in rather than sign an option and send it back. Many people don't come in is what she said.

- - - Updated - - -



What in the flying fuck are you talking about? I feel like I'm in a Reddit thread. They offered me 6.19% on a 5 year fixed. That's lower than 6.79 the last time I checked.

For context, I just recently signed a renewal at 5.35% 5-year fixed with a major bank. They originally offered me 5.50% and I got them down a little bit (though not as low as I had hoped).

You need to sit down with someone to go over your finances and situation (ie: not fucking Beyond) and come up with a game plan. You need to factor in any penalties, porting ability and rates.

Your decision will not come from this thread I promise you that.

[max_boost]

did you contact the beyond specialists who do this for a living vs asking just the beyond awakening wonders

[suntan]

This quote is hidden because you are ignoring this member. Show Quote

For context, I just recently signed a renewal at 5.35% 5-year fixed with a major bank. They originally offered me 5.50% and I got them down a little bit (though not as low as I had hoped).

You need to sit down with someone to go over your finances and situation (ie: not fucking Beyond) and come up with a game plan. You need to factor in any penalties, porting ability and rates.

Your decision will not come from this thread I promise you that.

Hey we're better than Reddit.

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

Okay, so switch your mortgage to RBC and then sell your house and buy another house. What exactly is the problem?

Hey, there we go. An idea to ponder.

This quote is hidden because you are ignoring this member. Show Quote

For context, I just recently signed a renewal at 5.35% 5-year fixed with a major bank. They originally offered me 5.50% and I got them down a little bit (though not as low as I had hoped).

You need to sit down with someone to go over your finances and situation (ie: not fucking Beyond) and come up with a game plan. You need to factor in any penalties, porting ability and rates.

Your decision will not come from this thread I promise you that.

I was more or less asking for some guidance as I have not done anything whatsoever regarding this stuff. Most people here are more levelheaded and have good ideas. There has been good discussion here tho and I'll take these ideas with me moving forward. Thank you for posting your rate as well. I'm going to try and negotiate a better rate and see what happens. I'll meet up with servus, RBC and a broker after. Just need to get going on this.

[killramos]

Guidance:

“Go talk to someone who has the full story”

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

Guidance:

“Go talk to someone who has the full story”

I am. I was hoping to be armed with more "facts and data" before going in.

[ercchry]

This quote is hidden because you are ignoring this member. Show Quote

Ok so the penalty break fees appear to be around the $3900 mark if I choose to go on the variable rate at 7.2%.

So I would be paying $2030 per month (60 month variable) on this rate while the house is for sale plus pay the $3900 for penalty when sold.

The open mortgage payment is $2338 per month while the house sits for sale. (6 month open at 9.55%). If the house sits for 6 months, that's $1848 in extra cost. If it sits again for 6 months at same rate, that's $3696 in extra costs, approaching parity with the variable break cost.

Did I compare those two correctly? Because that seems like a really long time to be on an open before it reaches parity with variable break penalty. Did I fuck that all up?

Seems like the open mortgage is the way to unless the house sits for over a year, in which case, I have much bigger problems.

For reference... current mortgage amount at renewal is $217354.

Yes, the difference in the two is purely interest so you’re comparing the holding costs correctly.

If you leave for RBC, it’s a switch. If it’s cheaper, go for it… but be warned that if you port and need to increase the mortgage size… you might not have the best rate vs getting a brand new mortgage when you buy.

For the record, 9.xx% is a good open rate… opens are not cheap, there is no discount for anyone, they don’t want you in an open. It’s true cost of capital for them.

[spike98]

This quote is hidden because you are ignoring this member. Show Quote

There is one fun fact here that he missed though. You can port mortgage insurance, so if you do buy with less than 20% down, you’d just top up for the new loan amount (assuming that you’re increasing). A good broker will know this, they will have a contact to call for all 3 insurers to see if they hold your insurance or not if you don’t know which has it yourself

This is a good angle and may be (IMO) the deciding factor in porting. Good catch. Insured mortgages get better rates and to renew, port and use the cash to "top up" would probably leave OP in the best overall position.

[16hypen3sp]

@ercchry

Got some stuff going with RBC this morning to see what they'd be doing. She said essentially what you said; get a new mortgage. Best course of action is to just select the open mortgage with Servus and start a new one with RBC, if I'm interested in being with RBC. Going thru those motions to see what the rate would be right now.

[ercchry]

Not sure if RBC does 180 day rate holds for preapprovals, but would be a good backup in case the BOC does something stupid, but the rate won’t be great, chances are the market rates for live deals closer to possession of the new place will be way better… might require moving to a different lender all together though at that point, not 100% sure how RBC works as they’re not in the broker channel but usually a lender allows 1 rate adjustment before close.

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

Not sure if RBC does 180 day rate holds for preapprovals, but would be a good backup in case the BOC does something stupid, but the rate won’t be great, chances are the market rates for live deals closer to possession of the new place will be way better… might require moving to a different lender all together though at that point, not 100% sure how RBC works as they’re not in the broker channel but usually a lender allows 1 rate adjustment before close.

Yup. She did mention that as well. They can do a rate adjustment. Will keep that in mind tho. Thanks!