what would you do if you were me?

[secret-_-angel]

2 issues:

I gave my information including SIN number to my intial mortgage broker. She gave me a preapproval back in February for fixed rate. Since I didn't like the rate, I looked around and this time I ended up at CIBC Richmondhill. I got preapproval for prime - 0.9, 100% fully open mortgage. A day later she phoned me to say she can lend me for only prime - 0.8, on the same day she called me again to say prime -0.7.
1 month later (yesterday), I phoned her and now she said prime - 0.5

I'm not happy with the rate from both lender, and ended up with another mortgage broker.
This mortgage broker approved me for prime - 0.9 but by the time we did the amortatization, he is giving me prime - 0.7. Note: I never ever ever give him anything to him but my first name and statement : "i have no debt".
Two days later this mortgage broker emailed me with list of questions he wanted so he can firm the mortgage. In this email, he knows where we work, where we live.

I spoke to my intial mortgage broker and apparentely she was using the same lender as the third broker. That means he took my informations to do the preapproval. I was surprised he could give me preapproval without any of my information.

Isn't that mean he stole our identity? Also what do we do with cibc mortgage lady that keeps dropping the rate?

[Thalo]

Variable rates can't be locked in prior to closing in the same way that fixed rates can. The banks are constantly changing their variable rate variances: whenever the banks lower prime at the same time they lower the variance, to soften the blow (ie: a variable rate one day, with prime at 5% goes from prime minus .75, or 4.25%, to prime minus .5%, also 4.25%, after a 25bp drop in prime). Then gradually the variance increases as competition picks up and the banks find funding at lower rates.

Regarding use of your information: as I undestand it when you use a mortgage broker you're pretty much giving the go ahead for them to share your information with whichever mortgage company has the lowest rate.

[Wonderdollar]

Variable rates can't be locked in prior to closing in the same way that fixed rates can. The banks are constantly changing their variable rate variances: whenever the banks lower prime at the same time they lower the variance, to soften the blow (ie: a variable rate one day, with prime at 5% goes from prime minus .75, or 4.25%, to prime minus .5%, also 4.25%, after a 25bp drop in prime). Then gradually the variance increases as competition picks up and the banks find funding at lower rates.

Regarding use of your information: as I understand it when you use a mortgage broker you're pretty much giving the go ahead for them to share your information with whichever mortgage company has the lowest rate.

Variable rates can not be locked as these would keep on moving with prime. However, the variance to the prime can be locked for the same period as of fixed rate, which could be 90 days to 120 days depending on the lender.

If the lender gives you prime -.0.90% (in writing) then it means the difference to prime would always be prime -0.90% no matter what the prime rate moves to (either up or down) so far the mortgage closes in time.

You are right on the 2nd point that if you use mortgage broker's services you consent to the fact that he/she would share your information with the mortgage insurers and lender/s he tries to get you an approval (or pre-approval) from. However, the mortgage broker would not share (and should not) information with other broker unless he/she is working with that person on the deal.




Isn't that mean he stole our identity? Also what do we do with cibc mortgage lady that keeps dropping the rate?

I do not think so that the mortgage broker stole your identity because he is not going to do any thing wrong with your identity. He is only trying to get you mortgage. However, you can certainly ask him where he got all the information about you. One more thing; Did he pull your credit? He is not supposed to if you have not given him the consent to do it. I will not do it for my clients unless I have their consent in writing.

[Thalo]

The variance is locked once you get the mortgage, but if you're still in the pre-approval stage then you pretty much have a choice between locking in at a specified fixed rate or going variable. In the past it was easy for a banker/mortgage broker to confirm a certain variance and stick with it, because they were always able to do P-.75 or P-.9 or whatever, but lately the maximum variances have been all over the place, sometimes as low as P-.4%.

[Wonderdollar]

The variance is locked once you get the mortgage, but if you're still in the pre-approval stage then you pretty much have a choice between locking in at a specified fixed rate or going variable. In the past it was easy for a banker/mortgage broker to confirm a certain variance and stick with it, because they were always able to do P-.75 or P-.9 or whatever, but lately the maximum variances have been all over the place, sometimes as low as P-.4%.

I would disagree with that.

Once the bank gives a commitment, even for pre-approval, it will honour the rate for 90 days or 120 days as the case may be and if the mortgage does close between that time the customer would get what ever prime - variance has been locked.

Its up to you if you want to go in for a fixed rate at the time of mortgage closing but the bank would stick to the commitment rates.