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[Scotiabank] New 4 year fixed special 2.79%

  • Last Updated:
  • Aug 11th, 2019 7:15 pm
Sr. Member
Sep 16, 2013
831 posts
446 upvotes
SW ON
stevenanto wrote: its a good rate, but depending on the area you live in you get 2.69% for five years with mcap (virtual bank) through a broker, you can compare most of these rate on ratehub.
Such a small rate differential will be eaten by legal/discharge fees, so not worth it. And I believe 2.69% with MCAP is for new mortgages only, not for renewals.
stevenanto wrote: I believe that there will be another drop this again. perfect for me (as i renew in a month) and those who have to renew in the next quarter.
I am due to renew in September and thinking about doing it now with this rate. 5yr bond yields are quite higher than they were when the rates were 2.35%, so I have my doubts that rates will drop much more in the future. Any other opinions?
Jr. Member
May 29, 2017
180 posts
49 upvotes
Canada
Guys need your opinion:

I got approved with scotia, closing is In 2 months as my current property and purchase property are closing few days apart to make everything work.

I got 3.10% 5 year fixed closed. All is said and done except the actual closing dates.

Do I have a opportunity to get a lower rate?

I’m taking 500K mortgage as my down payment is significant so not insured with that <20% restriction.
Sr. Member
Oct 9, 2011
899 posts
392 upvotes
GTA
theflyingsquirrel wrote: Something to ponder.
If you have a variable rate with Scotia, you can switch to fixed rate anytime with no penalty.
So if you have having a variable at 3.5% now, you can switch to fixed for 2.79% with no penalty.
Saving how much right there regardless of if 2.79% is the lowest rate ever.
This is my situation with a 3.3% variable rate at BNS. I would need two BOC rate drops to equal this fixed rate. Not sure we will see a BOC move this year or next.

Decisions decisions.
Deal Addict
Jul 28, 2009
1370 posts
381 upvotes
I got the 2.79% 4 year fixed from RBC as well
Newbie
Dec 11, 2018
37 posts
15 upvotes
PunPryde wrote: I got the 2.79% 4 year fixed from RBC as well
I was offered the same about a month ago. For 5 year fixed it was 2.99% (which I took) plus a $750 credit on WestJet Visa.
Newbie
Jun 22, 2015
30 posts
7 upvotes
Hamilton
Need some advice here. I renewed my mortgage in August 2018 with Scotia and went with a 5 year variable (prime -1%). Current mortgage balance is $150,000. I have the ability with Scotia to lock into a fixed rate(I haven’t inquired about the lock in rate is) or I can break my mortgage by paying 3 months interest. Does it make sense to leave my current mortgage or should I stay assuming a BOC rate drop?
Deal Addict
May 1, 2011
1655 posts
1997 upvotes
Halifax
ashiwpershad wrote: Need some advice here. I renewed my mortgage in August 2018 with Scotia and went with a 5 year variable (prime -1%). Current mortgage balance is $150,000. I have the ability with Scotia to lock into a fixed rate(I haven’t inquired about the lock in rate is) or I can break my mortgage by paying 3 months interest. Does it make sense to leave my current mortgage or should I stay assuming a BOC rate drop?
you should really just do the math yourself and see if it's worthwhile. Nobody has a crystal ball. There are people who believe that rates can't go a lot lower and others (like me) think they can. Europe is trial ballooning a rate drop, USA has some economists / banks forecasting 3 and 4 drops (ie. .75-1%) by end of 2020. More banks are expecting BOC to stay the same or lower later this year early next.

That being said, rates could go up.

Not knowing your amortization left it's impossible to figure out exact numbers, but if everything stayed the same at this point, you are paying 2.95% interest and the best here is posted at 2.79. That's about .16% and 10-15 per month difference in your payment. If you can switch without penalty, you would save and if you dont want the higher risk of variable then it could be a good way to go. If BOC stays the same or goes down over next 5 years, paying a penalty and switching is definitely not the right thing to do and you would be better off just applying the same penalty amount on your mortgage as a prepayment. .
Member
Aug 31, 2001
325 posts
9 upvotes
Toronto
Are you guys just applying online instead of directly sending documents to a representative at the bank?
Newbie
Nov 2, 2011
45 posts
30 upvotes
PunPryde wrote: I got the 2.79% 4 year fixed from RBC as well
Hi there,

if your getting 2.79 online for 4 years and if you renewed in the branch, would of you gotten another 0.1 branch discount to bring it down to 2.69?
Member
User avatar
May 8, 2017
222 posts
101 upvotes
Hi,

I have a variable mortgage with scotia @3.49% with still over 4 years left. Has anyone tried switching it to fixed and got this rate? It is over 500k and not a high ratio mortgage.
Deal Fanatic
User avatar
Jun 6, 2010
5466 posts
2361 upvotes
Toronto, Ontario
dpw198 wrote: This is my situation with a 3.3% variable rate at BNS. I would need two BOC rate drops to equal this fixed rate. Not sure we will see a BOC move this year or next.

Decisions decisions.
ashiwpershad wrote: Need some advice here. I renewed my mortgage in August 2018 with Scotia and went with a 5 year variable (prime -1%). Current mortgage balance is $150,000. I have the ability with Scotia to lock into a fixed rate(I haven’t inquired about the lock in rate is) or I can break my mortgage by paying 3 months interest. Does it make sense to leave my current mortgage or should I stay assuming a BOC rate drop?
There is a huge difference between 3.3% and 2.79%.
No one know what is going to happen in the future, but let's say the variable rate will eventually drop to 2.5%. The question is how long is it going to take the rate to get there.
One major reason why we used to say variable rate is better is because it normally has a lower rate that fixed rate at the time and by the time the rate of fixed rate catch up, you have already saved a significant amount of money.

The same idea applies here.
If it takes 2.5 years for the rate to go from 3.3% to 2.5%, you've already save enough money to beat the lower variable rate by then.
Instead of hoping that something may or may not happen to happen, it is better to take something that is for sure happening.
greenfury wrote: Hi,

I have a variable mortgage with scotia @3.49% with still over 4 years left. Has anyone tried switching it to fixed and got this rate? It is over 500k and not a high ratio mortgage.
Just contact your banker. There is no penalty.
If I buy something that is not in deep discounted, my father will punish me; everyone will laugh at me. I will be the strange kid who doesn't fit in.
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Sr. Member
Oct 9, 2011
899 posts
392 upvotes
GTA
theflyingsquirrel wrote: There is a huge difference between 3.3% and 2.79%.
No one know what is going to happen in the future, but let's say the variable rate will eventually drop to 2.5%. The question is how long is it going to take the rate to get there.
One major reason why we used to say variable rate is better is because it normally has a lower rate that fixed rate at the time and by the time the rate of fixed rate catch up, you have already saved a significant amount of money.

The same idea applies here.
If it takes 2.5 years for the rate to go from 3.3% to 2.5%, you've already save enough money to beat the lower variable rate by then.
Instead of hoping that something may or may not happen to happen, it is better to take something that is for sure happening.



Just contact your banker. There is no penalty.
You're absolutely right. I kick myself for not locking in when the 5 year was 2.35% two years ago....but should have, could have....

I've done my calcs and I'll save $2500 in interest over 4 years, assuming nothing changes on the variable rates without having to go through the trouble of early payout penalties and legals which would eat through the savings.
Last edited by dpw198 on Jun 10th, 2019 10:28 am, edited 1 time in total.
Jr. Member
May 29, 2017
180 posts
49 upvotes
Canada
Guys need your opinion:

I got approved with scotia, closing is In 2 months as my current property and purchase property are closing few days apart to make everything work.

I got 3.10% 5 year fixed closed. All is said and done except the actual closing dates.

Do I have a opportunity to get a lower rate?

I’m taking 500K mortgage as my down payment is significant so not insured with that <20% restriction.
Catch me on my Discord Channel, we discuss all the phones and plans!: p7KUUmd
Sr. Member
Jun 16, 2008
776 posts
633 upvotes
If I'm 10 months into a 5-year fixed, 30 year amortization $280,000 @ 3.42%, am I pretty much locked out of this deal? Any point at all in sniffing around?
Sr. Member
Oct 9, 2011
899 posts
392 upvotes
GTA
Samshares wrote: Guys need your opinion:

I got approved with scotia, closing is In 2 months as my current property and purchase property are closing few days apart to make everything work.

I got 3.10% 5 year fixed closed. All is said and done except the actual closing dates.

Do I have a opportunity to get a lower rate?

I’m taking 500K mortgage as my down payment is significant so not insured with that <20% restriction.
My branch told me 5 year is 3.03%

You might be better off asking in the official mortgage rates thread. I've seen the brokers give quotes of 2.64% on 5 years for CMHC insured.

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