Bnorth
Active VIP Member
Just got offered 2.14 fixed on 5yrs for my renewal have time to shop around until November so we'll see what happens.
Negative interest rates ?
- Thread starter pfi572
- Start date
rhody605
Active VIP Member
All this is so frustrating to read... 2 years ago rates were on the rise. I was variable and it had gone up 1% in 6 months.... Of course all the forecasts at time were rates were continue to climb so i locked in at 3.68.... biggest mistake for me!!
Bnorth
Active VIP Member
refinance. probably worth your penalty to shave 1.5 points off right now.
Anvil1010
Active VIP Member
I just checked, my latest offer is 1.94% variable for 5 years.
Yea I renewed one of my mortgages 2 years ago at 3.34% rates were just crap then. I owe $240k and the IRD penalty is about $9k. But the difference in interest rate is 1.35% so a rate of 1.99% would be break even, anything under then that i'd be further ahead. So it makes no sense right now. In 2016 I should have locked in 5 years at 2.69%, instead I went 2 years at 2.14% thinking rates would stay low and ended up renewing at a terrible time in 2018.
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NoBrakes!
Active VIP Member
Like maxing out your rental mortgage principle and putting the equity on your primary for sizeable tax benefits?
Bnorth
Active VIP Member
That's reasonable tax planning but most mortgages let you alter payments and make lump sums. Usually the big kicker is canceling.
NoBrakes!
Active VIP Member
ahh yes I see... the devil is in the details!
Bnorth
Active VIP Member
Anyone getting any interesting rates on a 10year fixed?
firstdoo
Active VIP Member
Bank of Canada expected to cut five-year mortgage rate to 4.79 per cent for stress-test.
Ottawa’s mortgage stress test is about to get a little easier.
Mortgage experts expect the Bank of Canada to cut its benchmark five-year mortgage rate to 4.79 per cent from the current 4.94 per cent as soon as this Wednesday, as the majority of the big Canadian banks now have a five-year posted rate of 4.79 per cent. The central bank sets its benchmark according to the rate that appears most frequently among the six biggest banks.
The reduction in the benchmark rate would make it easier for borrowers to get a bigger loan, which would add more fuel to overheated housing markets.
“It will make qualifying easier, or permit some people to borrow fractionally more,” said Paul Taylor, president with mortgage lobby group Mortgage Professionals Canada.
Under the mortgage stress test, borrowers are required to prove they can afford an interest rate that is either two percentage points higher than their actual contract, or at the Bank of Canada’s benchmark five-year mortgage rate – whichever is higher.
The stress test, which first came into effect for insured mortgages in 2016, was designed to ensure that borrowers were not taking on too much debt and to cool the hot housing market. Initially it slowed borrowing and contributed to prices falling in Vancouver.
But now that borrowers have adjusted to the stress test and mortgage rates are at record lows, home prices are climbing in Toronto, Vancouver and most of Southern Ontario. In the Toronto region, the average selling price of a home soared above $900,000 with detached houses in the city hitting $1,541,003 last month, a 26-per-cent increase over July, 2019.
“If you’re on the bubble of qualifying for a mortgage, you may need every last dollar of buying power you can get,” said Rob McLister, mortgage broker and founder of rate comparison website Ratespy.com.
Mr. McLister said the Bank of Canada’s expected change will have an incremental impact. For example, he said a borrower with a $70,000 income with no other debt could afford $4,000 more on a home with a 5-per-cent down payment.
The Bank of Canada said it does not provide the rate in advance of its scheduled publication on Wednesdays.
The big banks advertise their posted rates on their websites, but their actual rates can be at least two percentage points lower than those rates.
https://www.theglobeandmail.com/bus...ed-to-cut-five-year-mortgage-rate-to-479-per/
Ottawa’s mortgage stress test is about to get a little easier.
Mortgage experts expect the Bank of Canada to cut its benchmark five-year mortgage rate to 4.79 per cent from the current 4.94 per cent as soon as this Wednesday, as the majority of the big Canadian banks now have a five-year posted rate of 4.79 per cent. The central bank sets its benchmark according to the rate that appears most frequently among the six biggest banks.
The reduction in the benchmark rate would make it easier for borrowers to get a bigger loan, which would add more fuel to overheated housing markets.
“It will make qualifying easier, or permit some people to borrow fractionally more,” said Paul Taylor, president with mortgage lobby group Mortgage Professionals Canada.
Under the mortgage stress test, borrowers are required to prove they can afford an interest rate that is either two percentage points higher than their actual contract, or at the Bank of Canada’s benchmark five-year mortgage rate – whichever is higher.
The stress test, which first came into effect for insured mortgages in 2016, was designed to ensure that borrowers were not taking on too much debt and to cool the hot housing market. Initially it slowed borrowing and contributed to prices falling in Vancouver.
But now that borrowers have adjusted to the stress test and mortgage rates are at record lows, home prices are climbing in Toronto, Vancouver and most of Southern Ontario. In the Toronto region, the average selling price of a home soared above $900,000 with detached houses in the city hitting $1,541,003 last month, a 26-per-cent increase over July, 2019.
“If you’re on the bubble of qualifying for a mortgage, you may need every last dollar of buying power you can get,” said Rob McLister, mortgage broker and founder of rate comparison website Ratespy.com.
Mr. McLister said the Bank of Canada’s expected change will have an incremental impact. For example, he said a borrower with a $70,000 income with no other debt could afford $4,000 more on a home with a 5-per-cent down payment.
The Bank of Canada said it does not provide the rate in advance of its scheduled publication on Wednesdays.
The big banks advertise their posted rates on their websites, but their actual rates can be at least two percentage points lower than those rates.
https://www.theglobeandmail.com/bus...ed-to-cut-five-year-mortgage-rate-to-479-per/
Bnorth
Active VIP Member
No, this is just the test following the existing rates down.
Bnorth
Active VIP Member
The Cdn economy is disgustingly dependent on real estate. Gov't isn't going to let its cash cow disappear.
Anvil1010
Active VIP Member
I was offered 2.99% on a ten year fixed.
- Thread starter
- #157
pfi572
Active VIP Member
Why do people go fixed when you can get cheaper leaving it floating ?
Go fixed at anytime if things look like they could change ?
Just curious?
Go fixed at anytime if things look like they could change ?
Just curious?
Bnorth
Active VIP Member
Was just offered a 10er at 3.64 but the offer on the 5er dropped to 1.99 she was hungry to get my signature when I told her I was shopping around.
At no time since I've had a mortgage have I ever felt that interest rates would drop further, and they wouldn't have if not for Covid, so instead I focused on protecting against the increase. Our world has never been more volatile and with the small spread between variable and fixed all it takes is missing one increase from your mortgage lender to lose the advantage.
snopro
Active VIP Member
Besides we all remember the elder Trudeau and the 20% interest rates. Better to go fixed till that prick is gone
NoBrakes!
Active VIP Member
I don't think it could go back that way again, it would decimate the new generation.
Same as a strike, we have 20 year old operators with 100,000$ Mercedes, that live at moms still... They will never sign a strike order, probably couldn't rough it a month.
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