Personal Finance

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

  • Last Updated:
  • May 8th, 2015 9:53 pm
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[OP]
Deal Addict
Sep 1, 2011
1853 posts
365 upvotes
Toronto

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
Deal Addict
Feb 10, 2003
1341 posts
1265 upvotes
Calgary
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.
Penalty Box
Dec 27, 2013
8003 posts
4031 upvotes
Toronto
Variable rate 3 months interest fee
[OP]
Deal Addict
Sep 1, 2011
1853 posts
365 upvotes
Toronto
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?
Sr. Member
Jul 21, 2003
962 posts
171 upvotes
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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