385k, 20% down, 5 year fixed preferred, but also open to variable. located in Halifax.
Sep 12th, 2017 10:43 am
Sep 12th, 2017 11:51 am
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Sep 12th, 2017 5:15 pm
You're not correct on both accounts.ahlaker wrote: ↑Sep 11th, 2017 5:45 pmInteresting. I had heard that brokers generally got a bonus for originating an insured deal. Must be a lender-by-lender basis. Are commissions from lenders fairly standard or is there a wide distribution? As I said and @skunkyjosh alluded to, transparency around broker commissions could be improved.
Insured mortgage carries significantly less risk than an uninsured one, so that's why the lender offers a lower rate. That said, when you factor in the cost of the insurance premium (which the borrower pays), the effective rate is often worse for an insured deal than for an uninsured one. Could brokers be more transparent in terms of how they are compensated, sure, but I don't think you can generalize and say that brokers push clients to certain lenders or certain products because of commission structures.
Sep 12th, 2017 5:22 pm
2.74% 5-year fixed is the best rate you can get out in BC.vicdealseeker wrote: ↑Sep 12th, 2017 3:49 pmCurrently finishing up RBC 2.99% 5 yr fixed with 30 yr ammortization.
Term ends Dec 7, 2017
House value now assessed at 837K
Mortgage amount ~ 290K
I'm starting approval process through HSBC (2.79% on hold for 5yr/ fixed)
I've been reading some very negative experiences with HSBC. Is this a bank I should stay away from? I've talked to two big banks that won't go lower than 3.19, haven't tried RBC yet because I'm looking for ammunition for my negotiation.
I'd be willing to go smaller lender route. Looking for advice/PM. Thanks!
Sep 12th, 2017 8:11 pm
Sep 12th, 2017 8:29 pm
Sep 12th, 2017 8:59 pm
Sep 12th, 2017 11:08 pm
Sep 13th, 2017 12:48 am
No brainer?? LOL. Not according to a couple of so called mortgage professionals here.gphammer wrote: ↑Sep 11th, 2017 1:57 pmHere is what I got from my lender for rental in BC
Since my variable is currently at 2.60%, doesn't the 3 yr at 2.69% sound like a no brainer??
Overall my avg rate works out be 2.49..which I can live with. The goal is to pay the least to the bank.
Sep 13th, 2017 1:29 am
So to be clear, a typical broker dealing with typical broker-channel lenders will not earn a higher commission if the originated deal is insured? That's fine if it's true, I just have data from Paradigm Quest suggesting otherwise (ie: a rate sheet suggesting that a x bps premium is paid on insured deals).
On second thought, I'm not sure lenders actually offer "better rates" on insured deals versus uninsured deals. Lenders are offering a lower contractual interest rate, but when the cost of the insurance is factored in, those loans are more expensive on an effective basis to the borrower (at least over the initial term). Over the full 25 year amortization I think the effective rate is better (insured v uninsured). Bah - too much for my puny brain to process at 1130pm!
Sep 13th, 2017 5:59 am
Sep 13th, 2017 9:11 am
ahlaker wrote: ↑Sep 13th, 2017 1:29 amSo to be clear, a typical broker dealing with typical broker-channel lenders will not earn a higher commission if the originated deal is insured? That's fine if it's true, I just have data from Paradigm Quest suggesting otherwise (ie: a rate sheet suggesting that a x bps premium is paid on insured deals).
As Kevin said, for the most part we don't get any extra comp, regardless of whether it is high ratio or not. Some lenders will have an extra incentive, as Merix (Paradigm Quest) does at the moment. You never hear us talk about this product however, as they don't have the lowest rate. Only do we ever talk about lowest rates on here. The brokers on this board sell based on rate. We know our clients are extremely rate sensitive, so we have to offer the lowest rates if we want to get your business.
The rate itself is often better. However, once you add the insurance premium, it is by no means a better to go with the lower rate with a premium vs. a higher rate without a premium. We've mentioned on this board many times before that it does not make financial sense to go with a down payment of 19.99% with an insurance premium to get a lower rate vs. 20% down with no insurance premium at a higher rate.
Sep 13th, 2017 9:15 am