Expired Hot Deals

[Scotiabank] New 4 year fixed special 2.79%

  • Last Updated:
  • Aug 11th, 2019 7:15 pm
Sr. Member
Oct 9, 2011
916 posts
401 upvotes
GTA
Lexi wrote: Are there good variable rates available through Scotia?
I was told they can offer me P-0.62, which isn't good at all compared to what some brokers can get.
Deal Addict
User avatar
May 6, 2007
1370 posts
219 upvotes
NeedaSuit wrote: I'm going to break my current variable, and go with a sub 2% 2year fixed mortgage, hefty penalty just under $5K when all said and done.
Is this also with Scotia? Any links to 2year sub 2% rates?
Member
Aug 31, 2001
368 posts
15 upvotes
Toronto
1. 5-year mcap 2.69%? could be a long time to lock

2. I called Scotia eHome and they said the STEP / HELOC is available on the next dollar and there are no minimum but I didn't trust the rep.

3. Where is 1.99% 2 year fixed
Sr. Member
Nov 22, 2012
835 posts
557 upvotes
VANCOUVER
dpw198 wrote: You can switch to any fixed rate term that is greater than the remaining term of your existing variable rate at Scotia without paying any penalties.
Do you know if the process is the same at TD?
Deal Addict
Aug 19, 2005
1501 posts
207 upvotes
For what it's worth, I spoke to my broker about switching from my variable rate Scotia STEP mortgage (3.1%). His advice is to hold tight as he thinks Scotia is throwing out these deals to lock-in folks now as he thinks fixed rates will drop further.
Deal Addict
User avatar
Jul 6, 2010
3000 posts
768 upvotes
Toronto
Sephora wrote: For what it's worth, I spoke to my broker about switching from my variable rate Scotia STEP mortgage (3.1%). His advice is to hold tight as he thinks Scotia is throwing out these deals to lock-in folks now as he thinks fixed rates will drop further.
I wonder if that is true, how long they would wait to drop further. Weeks or months?

My renewal date is the end of the month, so I'm debating between waiting til the last week and locking in, or taking a variable in hopes it drops further over the next few months and then locking in.
Sr. Member
Oct 9, 2011
916 posts
401 upvotes
GTA
mapleleafs89 wrote: I wonder if that is true, how long they would wait to drop further. Weeks or months?

My renewal date is the end of the month, so I'm debating between waiting til the last week and locking in, or taking a variable in hopes it drops further over the next few months and then locking in.
No one can predict what the bond markets will do. If they can do that, then they won’t need the Bank of Canada, the Fed or any central bank.

Do what you feel works for you.

Last thing you want is the bond market to rally and the banks raises rates.
Last edited by dpw198 on Jun 11th, 2019 9:30 pm, edited 1 time in total.
Sr. Member
Oct 9, 2011
916 posts
401 upvotes
GTA
Sephora wrote: For what it's worth, I spoke to my broker about switching from my variable rate Scotia STEP mortgage (3.1%). His advice is to hold tight as he thinks Scotia is throwing out these deals to lock-in folks now as he thinks fixed rates will drop further.
This rationale makes no sense. The bank borrows in the bond market at the 4 year mark when you sign up for a 4 year rate. They rarely borrow 5 year money and give you a 1, 2, 3, 4 year mortgage. This is known as duration matching.

Doesn’t matter if bond rates go up or down, when you (all of us) want a mortgage, they go into the capital market and borrow money, add their mark up and charge us a rate. The bank is then fully hedged out and the rest becomes purely servicing the mortgage over the next 4 years.

I’d be ok with your broker saying HE has a crystal ball and thinks rates will come down so you should wait. But what he says about the bank wanting you to lock in now with rates coming down later makes little sense. They would never issue say 100 million in 4 year mortgages and wait for rates to come down then go and borrow the money to fund the mortgages. First they just dont have that kind of money laying around un-utilized and second, they don’t have a crystal ball to be able to tell which way rates are going to go.

What makes more sense is that the bank is short of 4 year assets and is offering a lower rate to entice mortgagors so they can fill that bucket.

Right now, there’s not much difference between the 4 yr vs 5 yr govt of Canada bond rates, in fact the 4 yr is 1.44% vs 5 yr of 1.426%. Just looking at these rates, you’d think the 4 and 5 yr rates would be the same yet they wouldn’t budge from 3.03% when I asked them to renew me for 5 years at 2.79% so I early renewed my variable into the 4 year fixed.
Last edited by dpw198 on Jun 11th, 2019 10:04 pm, edited 2 times in total.
Newbie
Aug 22, 2014
5 posts
Toronto, ON
Hi, I am a first time home buyer. Just wondering if TD provides only collateral mortgage ?
CIBC is offering 2.99% 5 year term uninsured mortgage for 30 year amortization period, is that good deal compared to scotiabank 4 year term 2.79%.
Thanks
Member
Aug 10, 2013
397 posts
189 upvotes
Mississauga
ROOP007 wrote: Hi, I am a first time home buyer. Just wondering if TD provides only collateral mortgage ?
CIBC is offering 2.99% 5 year term uninsured mortgage for 30 year amortization period, is that good deal compared to scotiabank 4 year term 2.79%.
Thanks
Wait ! the rate will go down....
Newbie
Aug 22, 2014
5 posts
Toronto, ON
bonegraft wrote: Wait ! the rate will go down....
Thanks for the reply.
I have closing on 20th July. how far I can go?

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