Personal Finance

Switching Mortgage Personne

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  • Nov 11th, 2019 3:01 pm
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[OP]
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Oct 13, 2009
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Switching Mortgage Personne

We have been working with a broker who gave us a rate of ~3% but midway a friend told me I could get ~2.7%.

The original broker told us to get that ~2.7% in writing and send to him.

To get the 2.7% we had to start the application process... at this point can we still go back to the original broker with something in writing or should I even bother at this point?
:rolleyes:
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Feb 28, 2014
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D0ntgiveajack wrote:
Nov 8th, 2019 11:01 am
We have been working with a broker who gave us a rate of ~3% but midway a friend told me I could get ~2.7%.

The original broker told us to get that ~2.7% in writing and send to him.

To get the 2.7% we had to start the application process... at this point can we still go back to the original broker with something in writing or should I even bother at this point?
Where are you (like city/province) and what kind of mortgage is it? Is it a 5 year fixed? Motus Bank is doing 2.59% for a 5 year fixed mortgage right now.
https://www.motusbank.ca/Accounts/Mortg ... learn-more
[OP]
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deltatux wrote:
Nov 8th, 2019 12:56 pm
Where are you (like city/province) and what kind of mortgage is it? Is it a 5 year fixed? Motus Bank is doing 2.59% for a 5 year fixed mortgage right now.
https://www.motusbank.ca/Accounts/Mortg ... learn-more
We would prefer to stay with TD because we can get the mortgage penalty back from the sale of our previous house.
Maybe I could get TD to match motus?
:rolleyes:
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Dec 12, 2005
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Just finished asking TD to match Motus via the 844 number, no go for me. I am for renewal.
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D0ntgiveajack wrote:
Nov 8th, 2019 2:01 pm
Also, is that 2,59 for GTA or specific area? I'm not in GTA
Little to no chance that TD or any of the big banks will match a rate like that.

Are you actually working with a mortgage broker...? Or do you mean a TD Mortgage Advisor?
[OP]
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superfresh89 wrote:
Nov 8th, 2019 2:07 pm
Little to no chance that TD or any of the big banks will match a rate like that.

Are you actually working with a mortgage broker...? Or do you mean a TD Mortgage Advisor?
I WAS working with a mortgage broker at the start. But midway we found lower rates but he was still firm on ~2.9% ish.

I felt bad for him starting the work but he doesn't seem to want to go any lower despite what I'm telling him.
:rolleyes:
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D0ntgiveajack wrote:
Nov 8th, 2019 1:51 pm

We would prefer to stay with TD because we can get the mortgage penalty back from the sale of our previous house.
Maybe I could get TD to match motus?
D0ntgiveajack wrote:
Nov 8th, 2019 2:01 pm

Also, is that 2,59 for GTA or specific area? I'm not in GTA
There's no geographic limitation on the 2.59% rate that I can find, though it's safer to assume that it's for ON, best to call for details. Mortgage rates tend to be differentiated between the provinces and not based on municipal boundaries. Seeing you singling out saying that you're not in the GTA, you're somewhere else in Ontario?

Honestly, I find that lenders tend to cover transfer fees and sometimes penalties for breaking the mortgage depending on the cost, you can probably reach out to Motus to see if they're willing to cover the costs or a portion of it. A rate difference between 2.59% and 3% from TD is huge, even if TD can cover your penalty, it's likely baked into that 3% rate. I'd crunch the math to see if it's really worth it to stick with TD through the same terms or would it be better to switch lenders. The savings over 5 years may be a lot more significant than the one time rebate of the penalty.

If there's a Meridian Credit Union branch near you and you rather deal in person, Meridian Credit Union, the parent of Motus Bank is also offering the same rate.
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deltatux wrote:
Nov 8th, 2019 2:15 pm
There's no geographic limitation on the 2.59% rate that I can find, though it's safer to assume that it's for ON, best to call for details. Mortgage rates tend to be differentiated between the provinces and not based on municipal boundaries. Seeing you singling out saying that you're not in the GTA, you're somewhere else in Ontario?

Honestly, I find that lenders tend to cover transfer fees and sometimes penalties for breaking the mortgage depending on the cost, you can probably reach out to Motus to see if they're willing to cover the costs or a portion of it. A rate difference between 2.59% and 3% from TD is huge, even if TD can cover your penalty, it's likely baked into that 3% rate. I'd crunch the math to see if it's really worth it to stick with TD through the same terms or would it be better to switch lenders. The savings over 5 years may be a lot more significant than the one time rebate of the penalty.

If there's a Meridian Credit Union branch near you and you rather deal in person, Meridian Credit Union, the parent of Motus Bank is also offering the same rate.
OP said he's going with TD because he's porting his previous TD mortgage.

He has no choice but to go with TD if he wants to be reimbursed for the penalty that he already paid for.

Sounds like he's getting 2.7% from TD anyway. An extra 11 bps will not likely be enough to cover the pre-payment charge
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superfresh89 wrote:
Nov 8th, 2019 2:53 pm
OP said he's going with TD because he's porting his previous TD mortgage.

He has no choice but to go with TD if he wants to be reimbursed for the penalty that he already paid for.

Sounds like he's getting 2.7% from TD anyway. An extra 11 bps will not likely be enough to cover the pre-payment charge
If that is indeed the case, then yup, moving to Motus Bank might not make sense. I'd still run the numbers regardless to make sure that I still got the best deal if I were the OP. Never hurts to run the numbers.
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D0ntgiveajack wrote:
Nov 8th, 2019 11:01 am
We have been working with a broker who gave us a rate of ~3% but midway a friend told me I could get ~2.7%.

The original broker told us to get that ~2.7% in writing and send to him.

To get the 2.7% we had to start the application process... at this point can we still go back to the original broker with something in writing or should I even bother at this point?
Rates start at 2.39% 5-year fixed OP...I would keep shopping around.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects

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