1. Yes, shorter terms to carry lower rates, as the interest rate yield curve is higher in later years.QWTYLP wrote: ↑ I'm starting to shop for a mortage right now and have a few questions.
1. I'm getting told by one of the brokers I'm shopping around with that I can normally get a better rate with a shorter rate hold. Is this normal industry practice?
2. I'm being quoted 2.29% rate for a 60 day hold from one broker, and a 2.34% rate for a 120 day hold from another broker. Unfortunately, my closing date is still up in the air and may be slightly beyond 120 days. My purchase is part of a multi-building strata with my building closing last, and my closing date depend on the other buildings not having any problems in the closing process. Even with this in mind, the marketer is asking me to secure a mortgage and lawyer now. Is this a good advice or is it too early for me to try to secure a rate hold?
3. unfortunately, I am looking for a smallish mortgage and don't qualify for the absolute lowest being touted around such as 2.18/2.19%. Would it make sense for me to commit to the higher 2.34% rate now for 120 days rolling forward, or should I wait until it is less than 60 days from my closing and try to get the lowest rate possible (assuming question 1 is correct)? I don't foresee rates going up in the near future, but I suppose anything can happen since the US seems to be looking to raise interest rates. Bank of Canada may follow.
Any help is appreciated.
2. How far away is your closing date? Are you signing the purchase agreement now? If so, a pre-approval should suffice. You won't get a rate hold (at least at competitive rates) now if the closing date is far in advance.
3. How much is the mortgage amount and when is the closing date?
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative