Mortgage Renewal - WWBD?

[killramos]

HELOC also isn’t an amortized loan, which allows alot of flexibility but is also very dangerous.

You are only required to pay interest month to month. It takes discipline to make principal payments rather than just pay interest forever.

[msommers]

True with any LOC.

My unsecured LOC is just prime (no +/-). Got lucky awhile back with a promo and a high limit for emergencies. Definitely not enough for a new Rubicon though!

[max_boost]

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True with any LOC.

My unsecured LOC is just prime (no +/-). Got lucky awhile back with a promo and a high limit for emergencies. Definitely not enough for a new Rubicon though!

Borrow money from buster to pay off your house in cash

Get heloc and pay buster back

Live life on Heloc

Aha yesss

[msommers]

Buster would take that deal if it involved USD.

[killramos]

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True with any LOC.

My unsecured LOC is just prime (no +/-). Got lucky awhile back with a promo and a high limit for emergencies. Definitely not enough for a new Rubicon though!

Rubicon or Rubcion 392?

[suntan]

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Borrow money from buster to pay off your house in cash

Get heloc and pay buster back

Live life on Heloc

Aha yesss

I'm just gonna give funds to 89coupe. 300% return at least.

[ExtraSlow]

96 is the new 84

[The Cosworth]

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Are HELOC rates a lot better than typical financing options?

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Heloc just prime +0.5 give or take but remember you need to have enough he to get the loc lol

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Heloc is the dark side of the force lol for most it’s better to stick to conventional as it’s more natural lol

YTD returns are 11-18% on TFSA and other things. Current unsecured LOC is 8'ish. So yeah could be a big game changer especially if I break into that 80k+ range for vehicles.

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HELOC also isn’t an amortized loan, which allows alot of flexibility but is also very dangerous.

You are only required to pay interest month to month. It takes discipline to make principal payments rather than just pay interest forever.

Yeah even reading that makes my skin crawl. So no worries there.

[max_boost]

don't over think it, it's basically your own money lol

[The Cosworth]

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don't over think it, it's basically your own money lol

Yeah Im not - lol. And I don't need it now. But my winter GTI is starting to bore me.......

[Brent.ff]

bump..

looking at making a move here, and our mortgage is up January 1. Worst possible time to renew, but is what it is.. Im thinking a 3 year fixed to just eat the pain for a few years, but what is the beyond hive mind thinking these days..

[Euro_Trash]

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bump..

looking at making a move here, and our mortgage is up January 1. Worst possible time to renew, but is what it is.. Im thinking a 3 year fixed to just eat the pain for a few years, but what is the beyond hive mind thinking these days..

IMO rates are still going up - I'll text you a decent podcast

[brucebanner]

Based off of Tim's recommendation and any info my wife and I could dig up elsewhere, we locked in with our new term.

[killramos]

Fixed rates are the way to go right now, and that has absolutely nothing to do with how I am compensated.

- Every Mortgage Broker ever

[ercchry]

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Fixed rates are the way to go right now, and that has absolutely nothing to do with how I am compensated.

- Every Mortgage Broker ever

Uh, it’s actually not how they’re compensated… compensation is linked to term length

[pheoxs]

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bump..

looking at making a move here, and our mortgage is up January 1. Worst possible time to renew, but is what it is.. Im thinking a 3 year fixed to just eat the pain for a few years, but what is the beyond hive mind thinking these days..

Canada's next inflation update is next week (27th) so I'd see what the numbers look like then. If things continue to be hot I'd look at resigning sooner as rates may continue to rise but if the month over month inflation dips again then I'd try and be patient. The US just did their first rate pause so it looks like things will hopefully stop rising soon.

Either way I do think a 3 year term is probably a good bet.

[Xtrema]

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Canada's next inflation update is next week (27th) so I'd see what the numbers look like then. If things continue to be hot I'd look at resigning sooner as rates may continue to rise but if the month over month inflation dips again then I'd try and be patient. The US just did their first rate pause so it looks like things will hopefully stop rising soon.

Either way I do think a 3 year term is probably a good bet.

I read somewhere that they don't really care about CPI and is going up next 2 meetings because RE is hot.

With a lot of 1 year to 18 month GIC giving you 5.25% mean they are betting on a rate increase.

[pheoxs]

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I read somewhere that they don't really care about CPI and is going up next 2 meetings because RE is hot.

With a lot of 1 year to 18 month GIC giving you 5.25% mean they are betting on a rate increase.

BoC doesn’t care about RE. They actually just did their update to the basket of goods for CPI (as they frequently do) and they reduced the amount of weight that housing has. Supposedly because it reflects 2022 data where housing was cooling.

[16hypen3sp]

Bump.

I have my renewal coming up on March 1. The plan is to sell this place and buy in Red Deer. My mortgage is with Servus but my normal bank is RBC.

I just got the renewal form in the mail. Since I plan on selling, I looked at a 6 month open mortgage. The APR is 9.558%. That takes my current payment from $1706 to $2338.

If I'm selling, do I need to take this? I have never sold a house before so I'm not really sure on what I have to do here.

My second question is about the rate on the new mortgage...

I have looked online at Servus and RBC posted mortgage rates.

Servus shows a special rate for a 5 year fixed is 5.69%. (Updated Feb. 1 2024)
RBC shows a special rate for a 5 year and 4 year fixed is 5.59%.

If I look at this renewal letter, I am only offered 6.19% for a 5 year fixed.

Am I missing something here? Why isn't servus offering me the 5.69% rate for the 5 year renewal option?

I have a meeting with servus on Saturday and I was hoping to get them to somewhat match the 4 year fixed rate option from RBC for the new mortgage.

Am I totally lost on this?

EDIT: Nevermind the last part. The special offers appear to be for new purchase/switches. I didn't read the RBC page clearly enough

[killramos]

That sounds like highway robbery in exchange for not having to pay 3 months variable interest to walk away on a conventional mortgage.

You need to be damn sure your place is going to sell if that’s the case, and need to be asking yourself the question of are you going to need a mortgage on the next place? In which case porting the mortgage means you probably don’t need to pay a break fee anyway.

What you need to do is go talk to someone ( broker, bank, whatever you want ) about what you are trying to do becuase it sounds like without advice you are walking into a minefield.

Full stop /thread.

I repeat. Don’t talk to beyond.

Go talk to a bank or mrotgage broker.