Mortgage opinions required, help!!

[Apollo]

Hi All,

I found out that the condo i purchased is going to register a lot ealier then i had planned for (which is good) however i have not had too much time to consider my morgage options thoroughly.

This is my first piece of real estate and the first time I am leaving momma's house!!
I have called around and here are the bext rates I have been offered, but i dont know which way too go!!! PLease see my options and let me know your opinions!!!

1. 5yr Variable at 2.35%
2. 4yr fixed at 2.99%
3. 5yr fixed at 3.59%


Also note that i am not concered with a $100/month fluctuation in mortgage cost, i just want to pay it down asap to build my equity. I also wanted to make sure I can easily pull out my equity if i ever wanted to invest in another place. BMO and RBC offer what is called a "homeline plan" where i can pull upto 80% if i have over 20% down. Does anyone know who offers the better mortgage product?

PLEASE help me brainstorm my options as i have to pick a mortgage this week!!!

Thank you!!!

 

[Ric]

Hi All,

I found out that the condo i purchased is going to register a lot ealier then i had planned for (which is good) however i have not had too much time to consider my morgage options thoroughly.

This is my first piece of real estate and the first time I am leaving momma's house!!
I have called around and here are the bext rates I have been offered, but i dont know which way too go!!! PLease see my options and let me know your opinions!!!

1. 5yr Variable at 2.35%
2. 4yr fixed at 2.99%
3. 5yr fixed at 3.59%


Also note that i am not concered with a $100/month fluctuation in mortgage cost, i just want to pay it down asap to build my equity. I also wanted to make sure I can easily pull out my equity if i ever wanted to invest in another place. BMO and RBC offer what is called a "homeline plan" where i can pull upto 80% if i have over 20% down. Does anyone know who offers the better mortgage product?

PLEASE help me brainstorm my options as i have to pick a mortgage this week!!!

Thank you!!!

Apollo,

Is there a reason why you are looking only at BMO and RBC? I think your best bet will be to contact a mortgage broker. I know a few very good ones. Pm me if you would like contact info. Otherwise, the 2.99% fixed 4yrs is very attractive. Make sure you know what the pre-payment and port options are. Good Luck!

 

[adeel]

Hi All,

I found out that the condo i purchased is going to register a lot ealier then i had planned for (which is good) however i have not had too much time to consider my morgage options thoroughly.

This is my first piece of real estate and the first time I am leaving momma's house!!
I have called around and here are the bext rates I have been offered, but i dont know which way too go!!! PLease see my options and let me know your opinions!!!

1. 5yr Variable at 2.35%
2. 4yr fixed at 2.99%
3. 5yr fixed at 3.59%


Also note that i am not concered with a $100/month fluctuation in mortgage cost, i just want to pay it down asap to build my equity. I also wanted to make sure I can easily pull out my equity if i ever wanted to invest in another place. BMO and RBC offer what is called a "homeline plan" where i can pull upto 80% if i have over 20% down. Does anyone know who offers the better mortgage product?

PLEASE help me brainstorm my options as i have to pick a mortgage this week!!!

Thank you!!!

Hi Apollo. I am a mortgage agent working at a brokerage. I've left you a detailed PM with some suggestions.

For public knowledge, i'll say that the 5 yr variable rate being offered is not that competitive, and the 5 yr fixed rate can be beaten as well.

As for your other question, those charges will likely be registered as collateral rather than conventional mortgage charges. What this means is that you will have to pay some higher fees in moving your mortgage should you decide to shop around on renewal. In my experience, customers regret going for collateral charges as they are essentially more restrictive. I might suggest taking a shorter term (there are good 2 and 3 yr fixed rate mortgages available as well) which gives you total flexibility for the entire amount rather than on equity only.

I've left my contact information in the PM i sent you. Feel free to contact me if you have any questions.

 

[Apollo]

I think you misunderstood my concern Adeel. I want to make sure I can easily, without changres and very low rates - access the equity in my home to buy another place down the road

 

[AMB]

Apollo, I worked in the mortgage industry and your best bet is to get a reputable agent (one who works for multiple lenders), there are many options, restrictions, penalties etc that vary all the time between lenders. I know National Bank offered a competitive All-In-One-Readvanceable HELOC (Home equity line of credit) which may work for you, you can look it up.

As for finding the lowest rate (may not necessarily be the best for you, some are no-frills mortgages with more restrictions/fees) you can check out Ratehub.ca and compare rates.

Also remember, your mortgage agent can buy down a rate for you (it will cost him some of his commission though).

Hope this helps.

 

[MarcFromOttawa]

Hi All,

I found out that the condo i purchased is going to register a lot ealier then i had planned for (which is good) however i have not had too much time to consider my morgage options thoroughly.

This is my first piece of real estate and the first time I am leaving momma's house!!
I have called around and here are the bext rates I have been offered, but i dont know which way too go!!! PLease see my options and let me know your opinions!!!

1. 5yr Variable at 2.35%
2. 4yr fixed at 2.99%
3. 5yr fixed at 3.59%


Also note that i am not concered with a $100/month fluctuation in mortgage cost, i just want to pay it down asap to build my equity. I also wanted to make sure I can easily pull out my equity if i ever wanted to invest in another place. BMO and RBC offer what is called a "homeline plan" where i can pull upto 80% if i have over 20% down. Does anyone know who offers the better mortgage product?

PLEASE help me brainstorm my options as i have to pick a mortgage this week!!!

Thank you!!!

http://www.ratesupermarket.ca/best_mortgage_rates/

You may also PM mortgage brokers in the following thread. They seem to be offering good rates for GTA only.
http://forums.redflagdeals.com/official-mortgage-rates-thread-351105/943/


Originally Posted by Geese_Howard
1 year 2.09%
2 year 1.85%
3 year 1.99%
4 year 2.39%
5 year 2.89%

Up to 1 year holds Originally Posted by laptop-tech
As per my post yesterday, small correction in the fixed rates available today. Still FANTASTIC rates! Plenty of pre-payment privileges, such as double ups, payment increase plus lump sum. Major bank. This is NOT a "no frills" type of mortgage.

1 year 2.09%
2 year 1.85%
3 year 1.99%
4 year 2.39%
5 year 2.89%

Rates can be held for 4 months (refinance or switch) or 6 months (purchases). If is a new construction, rates can be held for up to 1 year.

 

[Eug]

I was just about the post that very same link. And it's not just one broker. Those killer rates are available from multiple brokers if you happen to be buying in the GTA. However, it depends on the size of the mortgage. They are not available to those with mortgages under $250000. Rates are higher for smaller mortgages.

I hope you're not closing in a week though, because that's cutting it very, very, very close..

 

[jeff316]

Let us know if you go with those super-low mortgage rates offered by the brokers on that link. It'd be interesting to find out how it works.

I looked into those rates but no one else - not branch staff, internal bank mortgage officer, or independent broker - was able to confirm the validity of the offer. I got told by all three that there was no way they could offer those rates, below the cost of borrowing and admin. I wonder how they're offering them so low, maybe taking a cut off their commission?