Advice needed - Mortgage renewal, help!! Thank you!

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May 8th, 2015 9:53 pm

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May 8th, 2015 6:01 pm

azybcxrfd [OP]: Deal Addict; Sep 1, 2011; 1853 posts; 365 upvotes; Toronto

May 8th, 2015 6:01 pm

Advice needed - Mortgage renewal, help!! Thank you!

All,

My 5 year fixed mortgage is expiring in a month and I only have $25K left.

I do look to move to a bigger place within next year so will eventually need to get a bigger mortgage. Please advise on next step and what's the best option I should go with! (e.g. should I do a 1 year variable and what's the rate now?)

Thanks!

4 replies

May 8th, 2015 6:12 pm

Strider: Deal Addict; Feb 10, 2003; 1341 posts; 1265 upvotes; Calgary

May 8th, 2015 6:12 pm

I don't think I've ever seen such a thing as a 1 year variable, not even sure they exist.
I'd get a HELOC for maximum flexibility.

May 8th, 2015 6:56 pm

daivey: Penalty Box; Dec 27, 2013; 8003 posts; 4031 upvotes; Toronto

May 8th, 2015 6:56 pm

Variable rate 3 months interest fee

May 8th, 2015 7:33 pm

azybcxrfd [OP]: Deal Addict; Sep 1, 2011; 1853 posts; 365 upvotes; Toronto

May 8th, 2015 7:33 pm

Strider wrote: ↑I don't think I've ever seen such a thing as a 1 year variable, not even sure they exist.
I'd get a HELOC for maximum flexibility.

Thanks - I am already on HELOC.

What happens if I go for 5 year fixed but decide to buy a new house and sell current? How does that work?

May 8th, 2015 9:53 pm

juggie: Sr. Member; Jul 21, 2003; 962 posts; 171 upvotes

May 8th, 2015 9:53 pm

azybcxrfd wrote: ↑Thanks - I am already on HELOC.

What happens if I go for 5 year fixed but decide to buy a new house and sell current? How does that work?

If you buy a new house they will just blend the old mortgage and new mortgage together. This is of course your mortgage terms allow this. I had a meeting at RBC about this specific thing recently, and they do that, you just basically get a new mortgage for the new amount you need and then they take the two and blend the rate and amount together. With 25k though, you might be best just paying it off asap. If you can afford $1000 bi weekly you should be able to pay it off on a 1 year fixed.

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