Real Estate

Mortgage Advice

  • Last Updated:
  • Jul 21st, 2015 10:54 am
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[OP]
Newbie
User avatar
Mar 4, 2002
90 posts

Mortgage Advice

Hi

I just bought a pre construction townhouse. It will be finished in March 2017. I got my pre approval already from my bank. I will need to get a mortgage just before March 2017. I did some research and no banks or broker will hold today's rate or give me a rate discount till 2017. The reason is that I think the rate will go up near 2017. It would be better to get today's rate. Any advice?
7 replies
Deal Expert
Aug 22, 2011
38194 posts
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Center of Universe
120days rate hold is the max FI would provide.
Newbie
Nov 25, 2014
13 posts
1 upvote
Ottawa, ON
The longest that most will guarantee the rate is 120 days. Many of the low rates that are frequently advertised are for "quick" closings - 30 to 45 days maximum. Right now, unfortunately, you just have to sit and wait it out.
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Colin Reid
Mortgage Agent
Mortgage Architects, License#M10002729
Deal Addict
Jun 6, 2015
1435 posts
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Yeah they're not interested until it's closer...Congratulations on the purchase.
Deal Fanatic
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Sep 13, 2011
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Toronto
babu889 wrote: Hi

I just bought a pre construction townhouse. It will be finished in March 2017. I got my pre approval already from my bank. I will need to get a mortgage just before March 2017. I did some research and no banks or broker will hold today's rate or give me a rate discount till 2017. The reason is that I think the rate will go up near 2017. It would be better to get today's rate. Any advice?
As mentioned, the maximum most financial institution will provide is 120 days. There are some banks however that will go up to 1 year, however that still doesn't help you out. Your best bet is to work with the bank that your builder has a relationship with, who can likely lock in a rate for you. It won't be an attractive rate, but it least it gets you something. Once you are within 120 days of closing, you can then start shopping around for a better rate and are in no way obligated to stick with that bank.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp.
(lic. 10532)
[OP]
Newbie
User avatar
Mar 4, 2002
90 posts
PaulMeredith wrote: As mentioned, the maximum most financial institution will provide is 120 days. There are some banks however that will go up to 1 year, however that still doesn't help you out. Your best bet is to work with the bank that your builder has a relationship with, who can likely lock in a rate for you. It won't be an attractive rate, but it least it gets you something. Once you are within 120 days of closing, you can then start shopping around for a better rate and are in no way obligated to stick with that bank.
Thanks for the reply. The bank that work with the builder offers 4% for 5 years.
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Sep 13, 2011
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babu889 wrote: Thanks for the reply. The bank that work with the builder offers 4% for 5 years.
You can't expect a deal when holding a rate for that long. Its your only option and you aren't locked into it. Sign for that, and then start shopping when you are within 120 days.
Paul Meredith
Mortgage Broker, Author
CityCan Financial Corp.
(lic. 10532)
Deal Addict
User avatar
Jan 2, 2012
4425 posts
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Toronto
babu889 wrote: Hi

I just bought a pre construction townhouse. It will be finished in March 2017. I got my pre approval already from my bank. I will need to get a mortgage just before March 2017. I did some research and no banks or broker will hold today's rate or give me a rate discount till 2017. The reason is that I think the rate will go up near 2017. It would be better to get today's rate. Any advice?
As mentioned you need to wait and you will get whatever rates are offered closer to your closing date.

Also keep in mind a "pre-approval" is NOT a real approval. When you actually have a firm closing date in sight (don't be surprised if that March 2017 date gets pushed back) and are within an allowable time from that (120 days), only then will your bank actually do their due diligence to check your employment, income, debt/equity, etc. So you should not be switching jobs or taking on any big debts debts the closer it gets to closing, else the bank could deny you or approve you for a mortgage lower than what you need. Of course you should also shop around closer to closing to see if there are better mortgage rate offers from other lenders at the time.

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