Real Estate

Mortgage question

  • Last Updated:
  • Mar 20th, 2017 3:45 pm
[OP]
Member
Sep 14, 2007
487 posts
39 upvotes

Mortgage question

So I locked in the HSBC 2.35% 5 year fixed rate. But say I buy pre-construction and the closing is expected for next year, does that mean I will lose out on my rate since I don't start the actual mortgage amount until next year?
3 replies
Jr. Member
Jun 24, 2011
114 posts
41 upvotes
West Lafayette, Indi…
stryder1587 wrote:
Mar 20th, 2017 11:43 am
So I locked in the HSBC 2.35% 5 year fixed rate. But say I buy pre-construction and the closing is expected for next year, does that mean I will lose out on my rate since I don't start the actual mortgage amount until next year?
You don't have a mortgage with pre-con during the initial stage. The 20% is paid to the builder.
Deal Addict
Feb 2, 2014
3217 posts
510 upvotes
Toronto
stryder1587 wrote:
Mar 20th, 2017 11:43 am
So I locked in the HSBC 2.35% 5 year fixed rate. But say I buy pre-construction and the closing is expected for next year, does that mean I will lose out on my rate since I don't start the actual mortgage amount until next year?
Yes, most rate holds are only for 120 days. You won't get that rate if you close after the 120 days.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Nov 22, 2015
1453 posts
607 upvotes
stryder1587 wrote:
Mar 20th, 2017 11:43 am
So I locked in the HSBC 2.35% 5 year fixed rate. But say I buy pre-construction and the closing is expected for next year, does that mean I will lose out on my rate since I don't start the actual mortgage amount until next year?
Yeah... you need to apply for the mortgage when it's closer to closing date... you'll get whatever the rates are at that time as most lenders only guarantee rates for 90-120 days.
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