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[OP]
Deal Addict
Aug 18, 2004
1216 posts
119 upvotes
Toronto

mortgage renewal

Mortgage is up for renewal next month...

Currently on a 5-YR variable closed, prime less 0.85% with RBC.

They quoted a renewal for same term at prime less 0.4%

Anyone getting better deals out there? I'm happy to stay variable...
9 replies
Deal Fanatic
User avatar
Feb 2, 2014
8881 posts
2543 upvotes
Toronto
Jay-c wrote: Mortgage is up for renewal next month...

Currently on a 5-YR variable closed, prime less 0.85% with RBC.

They quoted a renewal for same term at prime less 0.4%

Anyone getting better deals out there? I'm happy to stay variable...
Best variable rate right now is Prime -.70% with a non-bank lender. Banks are currently offering horrible rates on variable terms.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Sep 17, 2009
229 posts
18 upvotes
Toronto
Jay-c wrote: Mortgage is up for renewal next month...

Currently on a 5-YR variable closed, prime less 0.85% with RBC.

They quoted a renewal for same term at prime less 0.4%

Anyone getting better deals out there? I'm happy to stay variable...
I think it is current market rate due to prime dropped ~ 2.70% and bank doesn't want go below inflation rate. Due to very low interest rate, if I need mortgage, I'd go with fixed rate (currently you can get fixed rate as prime -0.2%)
[OP]
Deal Addict
Aug 18, 2004
1216 posts
119 upvotes
Toronto
zemun1234 wrote: I think it is current market rate due to prime dropped ~ 2.70% and bank doesn't want go below inflation rate. Due to very low interest rate, if I need mortgage, I'd go with fixed rate (currently you can get fixed rate as prime -0.2%)
yeah I'm on the fence with fixed... I've always been a variable guy, I'm happy to take the risk for a reasonable discount. But with the minimal spread these days, wondering if I should just take the 5-YR fixed at 2.49.
Deal Fanatic
Nov 22, 2015
5781 posts
5284 upvotes
Jay-c wrote: yeah I'm on the fence with fixed... I've always been a variable guy, I'm happy to take the risk for a reasonable discount. But with the minimal spread these days, wondering if I should just take the 5-YR fixed at 2.49.
As you said, variable rates are sucking right now. Why a 5 year term though? With rates going nowhere fast, why not a 3yr or 2yr?
Newbie
Mar 15, 2015
28 posts
2 upvotes
Toronto, Ontario, Ca…
If you are okay with a variable-rate mortgage, then it’s fine. However, the prime lending rate always sees fluctuations and there is more financial risk. You can check with different mortgage brokers[/URL] to learn about the current situation for variable-rate mortgages. They will certainly help get the best deal for you.
Deal Fanatic
Nov 24, 2013
6214 posts
2965 upvotes
Kingston, ON
If you're not planning on moving / won't need to break, I'd strongly consider a 2yr-3yr Fixed at a rate comparable to today's Variables.

Definitely check broker channel,
Deal Guru
User avatar
Apr 17, 2005
11038 posts
1437 upvotes
Brampton
Someone posted they received 2.2% variable 5 yr offer with $250 cashback from RBC recently, look into it.
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