The lowest rate for a mortgage with 20% down is 2.94%. Lower than this if it's insured. If your mortgage is insured than there may be lower rate options available for you after 5 years.complainfromme wrote: ↑Oct 12th, 2017 6:54 pmHi experts, need some advice on what I should do for my first ever mortgage as I feel like my agent isnt doing a good job and is pushing for a commitment.
600k townhome prebuild, closing in 90 days, can do 20% down but do not have to, want to do 5year fixed.
What I guess I know:
I can get a rate lock from HSBC for 3.04% 5y fixed, insured or not
I can probably get a rate from nonBank lender of 2.84% for 5 yr fixed, insured
What I what to know:
1) Are those the cheapest rate I can get ( insured and uninsured) for a 90days lock? if not where can i get such info for the lowest rate?
2) From what I read, insured mortgage get a relatively better rate, is that also the case when it comes time to renew in 5 yrs?
3) If 2) is true, is it better to pay the insurance and go for the better insured rate as the insurance is probably $13K and the difference between in interest of insured and uninsured rate for 5yf is already at $10k ?
Thanks all !!!
When you have the option of putting 20% down, ALWAYS put down the 20%. It never makes sense to pay the CMHC fee to get a slightly lower rate. The lowest rate mortgage is not always the least expensive.
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