I signed up for the 5 year fixed at 3.12 today.
What are the major disadvantages with this mortgage?
Cant seem to find the terms and conditions.
Jan 15th, 2018 7:59 pm
Jan 15th, 2018 8:17 pm
Jan 15th, 2018 8:26 pm
Hi there,eman747 wrote: ↑Jan 15th, 2018 7:47 pmI have two TD mortgages in Ottawa as follow:
Mortgage 1: Condo Investment Rental Property
$160K left in mortgage. Property valued at about $430K with expiry on July 1, 2018. I want to withdraw some equity of about $100K from this to invest in another investment property.
Mortgage 2: Principle Residence Detached House
$300K left in mortgage. Property valued at about $800K with expiry on September 1, 2018. I want to have a HELOC so that I can do the cash damming strategy from my rental unit(s) to save on my income taxes.
Family Income of $200K plus with excellent credit. Is it too early to start the process now but I do see the rates going up? What are the best rates available know both fixed and variable?
Jan 15th, 2018 8:29 pm
Jan 15th, 2018 9:05 pm
Jan 15th, 2018 9:22 pm
Jan 15th, 2018 9:22 pm
No problem at all. The penalty I'm talking about is the penalty to discharge the mortgage early. You may need to discharge the mortgage for many reasons, but the main reasons are refinancing the mortgage (accessing equity that you've accumulated to do renovations, pay out debts, invest, etc), or selling the property and not porting the mortgage to a new property.
Jan 15th, 2018 9:30 pm
Hi there,blackshirt wrote: ↑Jan 15th, 2018 9:05 pmHello. I am looking to get a second opinion for a April 25th mortgage renewal:
Mortgage Balance: 124K (down from 205K amount at last renewal)
Property Value: 500K (condo townhouse)
Current Lender : 5 yr fixed at Street Capital @ 2.99, 20/20 prepayment
Insured by CMHC- Yes (original downpayment was only 10%)
I'm still waiting for the renewal rate offer from my current lender but the opinion I got from a Broker whose blog I've been reading is that this is considered a low value mortgage and my best option is to negotiate with my current lender. Is this right? Any advice as to the rates that may be available to me in this situation? Thanks in advance.
Jan 15th, 2018 9:43 pm
Jan 15th, 2018 9:53 pm
Jan 15th, 2018 10:17 pm
Jan 15th, 2018 10:22 pm
Thanks Connor. I'll await the renewal letter from Street Capital. Fingers crossed it will give me some good options.GreenMortgages wrote: ↑Jan 15th, 2018 9:30 pmHi there,
Whether or not you should switch lenders really depends on if you'll be saving any money by switching after factoring in all costs, and whether the amount you will be saving is worth going through the process for you. With a low mortgage balance such as yours, the interest saved by switching may not be worth it to you after factoring in some of the costs to switch. The lower the mortgage balance the less you'll save in interest, and the fees associated don't decrease with the mortgage balance.
It depends on what you're being offered at renewal, and what you next best alternative is. If you're being offered 3.49% by Street Capital and the next best alternative is 2.89%, then you would save almost $3500 in interest over the next 5 years by switching. It can be really inexpensive these days to switch, in some cases it can be free, in some cases you'll only have to pay the discharge fee to your current lender (~$350). So, in this example it would be worth it to switch lenders.
Of course, the likelihood is that the differential in rates being offered to you by Street Capital and the best alternative will be slimmer, but maybe not.
It's impossible to say without knowing what your options are!
Jan 15th, 2018 10:23 pm
Jan 15th, 2018 10:28 pm
Hi Alan,alanbrenton wrote: ↑Jan 15th, 2018 9:43 pmNow that many borrowers could be stuck with their current lenders because of stress testing, will the Helpful Brokers on this thread be able to share some of the lenders who upon renewal, don't try to gouge or rip their existing clients off?
Maybe they will not give the best rates and that's understandable but perhaps renew at a rate only 20-40 bps higher than newly acquired clients.
I know teaser rates will have been the modus operandi for some the Big Five players and likely moreso going forward.
Jan 15th, 2018 10:29 pm