I am 1 year into my 5 yr fixed with Scotiabank at 2.7%. Remaining principal around 600K.
Scotia is quoting 24k for breaking the mortgage
I have been seeing all these low rates.
Can you suggest any options to lower my rate in any way?
Sep 18th, 2020 9:37 am
Sep 18th, 2020 9:59 am
Wow that penalty hurts, a quick napkin calculation shows that you're not really ahead if you switched to 1.7% or higher for the next 4-5 years. Unless you could make a deal with them to pay lower penalty, I don't see any great move for you unless rates go to 1.5% or lower.
Sep 18th, 2020 11:20 am
Without knowing how many years left on your repayment I can't calculate exactly. If, for example, you started with 20 years which you're 1 year into (and have 19 years left), then your monthly payment is $3367 and you will owe $498k at the end of your 5 year term.
Sep 18th, 2020 3:53 pm
Inquire about a "Blend & Extend" Option. Scotia is listed as a provider that can do this. This option does not require "breaking" the mortgage (i.e. break fees).
Sep 19th, 2020 8:45 am
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Sep 28th, 2020 7:37 pm
I was able to get 1.75% 5 years fixed with $3000 cashback (tiered based on mortgage amount) through my BMO contact for uninsured (20% down) 30 year amortization. A couple of people I have referred from RFD were also able to get 1.70% through him for 5 year fixed uninsured with 25 year amortization. The cashback is only available until Oct 31st I believe (application needs to be approved by then, closing can be later).