Mortage advice?

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Feb 25th, 2021 9:50 pm

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Feb 19th, 2021 4:11 pm

TheOneBarton [OP]: Sr. Member; Sep 12, 2003; 601 posts; 57 upvotes; Toronto

Feb 19th, 2021 4:11 pm

Mortage advice?

I have about 18 months left on my 5 year fixed mortgage at 2.39% from 2017. Would it make sense to do a refinance/renewal? I was quoted 6K to break the mortgage due to IRD calculation. The new rate given to me by TD is 5 year fixed closed 1.76% and 3 year fixed closed 1.81%. still have about 340K left on the mortgage. Any feedback or advice would be appreciated as to whether I should exit TD completely, or break and still come back with a new 5 yr fixed rate offer. How great of a difference is 0.62%?

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Feb 19th, 2021 4:14 pm

clutch31: Jr. Member; Mar 14, 2018; 136 posts; 221 upvotes

Feb 19th, 2021 4:14 pm

TheOneBarton wrote: ↑ I have about 18 months left on my 5 year fixed mortgage at 2.39% from 2017. Would it make sense to do a refinance/renewal? I was quoted 6K to break the mortgage due to IRD calculation. The new rate given to me by TD is 5 year fixed closed 1.76% and 3 year fixed closed 1.81%. still have about 340K left on the mortgage. Any feedback or advice would be appreciated as to whether I should exit TD completely, or break and still come back with a new 5 yr fixed rate offer. How great of a difference is 0.62%?

It's an easy calculation...Multiply that difference on your remaining principal, divide by 12, and multiply by the number of remaining months.

+1

Feb 20th, 2021 2:08 am

RSX-S: Sr. Member; Jan 7, 2005; 746 posts; 152 upvotes; Toronto

Feb 20th, 2021 2:08 am

Go to an online mortgage calculator.
Plug in the info based on your current mortgage and see how much interest you would be paying.
Plug in the info based on the potential new mortgage and see how much interest you would be paying.

See if the difference is worth it, consider the panalty.

Also note that there are much better rates available. Checkout the sticky mortgage thread in this section, or a couple of deals from the banks in the ongoing deals section.

Feb 20th, 2021 9:52 pm

TheOneBarton [OP]: Sr. Member; Sep 12, 2003; 601 posts; 57 upvotes; Toronto

Feb 20th, 2021 9:52 pm

Thanks for the response. Got weird reply from TD with regard to IRD penalty cost. Called in Friday, they quote me 6k and only good for the day. Called in on Saturday and they now tells me it cost 78xx.

Anyway explanation for why such a drastic difference over one say for IRD calculation?

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Feb 20th, 2021 9:55 pm

JayLove06: Deal Guru; Feb 29, 2008; 13890 posts; 10160 upvotes

Feb 20th, 2021 9:55 pm

TheOneBarton wrote: ↑ Thanks for the response. Got weird reply from TD with regard to IRD penalty cost. Called in Friday, they quote me 6k and only good for the day. Called in on Saturday and they now tells me it cost 78xx.

Anyway explanation for why such a drastic difference over one say for IRD calculation?

It's a new number each day. Wouldn't trust any number they give you to be honest.

Feb 23rd, 2021 7:28 pm

jdmfishingonly: Deal Addict; Oct 13, 2008; 4601 posts; 1609 upvotes

Feb 23rd, 2021 7:28 pm

Had a 5-Year Fixed at 2.64% ... maturity August 2021.

Just did my early renewal at 1.95% for 7 Years.

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Feb 24th, 2021 11:37 pm

TheOneBarton [OP]: Sr. Member; Sep 12, 2003; 601 posts; 57 upvotes; Toronto

Feb 24th, 2021 11:37 pm

7 years? what bank are you with?

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Feb 25th, 2021 8:25 am

aeromortgage: Jr. Member; Aug 14, 2020; 161 posts; 147 upvotes; Hamilton, ON

Feb 25th, 2021 8:25 am

TheOneBarton wrote: ↑ Thanks for the response. Got weird reply from TD with regard to IRD penalty cost. Called in Friday, they quote me 6k and only good for the day. Called in on Saturday and they now tells me it cost 78xx.

Anyway explanation for why such a drastic difference over one say for IRD calculation?

I've seen it change thousands of dollars in a day.
It typically happens at the half-year point. In your case the rate they are comparing for you probably went from the 2 year rate to the 1 year rate at 18 months.

_

Getting a mortgage is like writing a test...except you're allowed to work with someone who knows the answers!

Kirby Reschny
Mortgage Agent
Real Mortgage Associates (FSRA #10464)

Feb 25th, 2021 9:02 am

fogetmylogin: Deal Addict; Nov 13, 2013; 2434 posts; 1204 upvotes; Ottawa

Feb 25th, 2021 9:02 am

clutch31 wrote: ↑ It's an easy calculation...Multiply that difference on your remaining principal, divide by 12, and multiply by the number of remaining months.

You also need to look at the rate you will get now compared to in 18 months. Currently that seems like it might be much higher. The risk of rates like 4% or something in 18 months also might make even a slight loss now worth it.

Feb 25th, 2021 8:06 pm

TheOneBarton [OP]: Sr. Member; Sep 12, 2003; 601 posts; 57 upvotes; Toronto

Feb 25th, 2021 8:06 pm

Update, called again on Monday and it’s 4700. How they pull these no off their computer is anyone’s guess now. Will call tmr and find the penalty again. But def getting out of TD.

Heatware: TheOneBarton

Feb 25th, 2021 9:50 pm

Holystone: Sr. Member; Oct 24, 2016; 967 posts; 821 upvotes; ON

Feb 25th, 2021 9:50 pm

TheOneBarton wrote: ↑ Update, called again on Monday and it’s 4700. How they pull these no off their computer is anyone’s guess now. Will call tmr and find the penalty again. But def getting out of TD.

Lol. Maybe next time ask them to look at their calendar and let you know which date it will be the lowest

Isn't it great to live in the 21st century where deleting history has become more important than making it.

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