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  • Feb 25th, 2021 9:50 pm
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[OP]
Sr. Member
Sep 12, 2003
601 posts
57 upvotes
Toronto

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%?
Heatware: TheOneBarton
10 replies
Jr. Member
Mar 14, 2018
136 posts
221 upvotes
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.
Sr. Member
Jan 7, 2005
746 posts
152 upvotes
Toronto
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.
[OP]
Sr. Member
Sep 12, 2003
601 posts
57 upvotes
Toronto
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?
Heatware: TheOneBarton
Deal Guru
Feb 29, 2008
13890 posts
10160 upvotes
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.
Deal Addict
User avatar
Oct 13, 2008
4601 posts
1609 upvotes
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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[OP]
Sr. Member
Sep 12, 2003
601 posts
57 upvotes
Toronto
7 years? what bank are you with?
Heatware: TheOneBarton
Jr. Member
User avatar
Aug 14, 2020
161 posts
147 upvotes
Hamilton, ON
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)
Deal Addict
Nov 13, 2013
2434 posts
1204 upvotes
Ottawa
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.
[OP]
Sr. Member
Sep 12, 2003
601 posts
57 upvotes
Toronto
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
Sr. Member
User avatar
Oct 24, 2016
967 posts
821 upvotes
ON
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 Face With Tears Of Joy
Isn't it great to live in the 21st century where deleting history has become more important than making it.

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