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Tangerine

Tangerine - 5 YR variable, closed - 1.35% - Targeted

  • Last Updated:
  • Mar 9th, 2021 1:48 pm
Sr. Member
Dec 12, 2003
813 posts
614 upvotes
Toronto
There's a reason why banks push on fixed mortgage rates - lock you in and they know most people will break their mortgage before the term is up and have to pay the huge IRD penalty.

Variable rate mortgages offer that peace of mind that you can leave the lender any time and just pay the 3 months interest penalty.

Also I remember back last year in spring everyone was saying to lock a fixed rate mortgage as rates will go up - except rates went down.
Deal Addict
Aug 5, 2015
3412 posts
3475 upvotes
Montreal, QC
TheRockNL wrote: Damn, my 3.14% fixed rate from MCAP isn't up until Nov 2023 :(

Every time I've gotten a mortgage, the rates were always on the high end of the ebb and flow. Never learned my lesson on variable vs fixed :(
Did you calculate how much it would cost to break it versus the savings you'd make? Savings of 1.5%+ a year could be quite a bit depending on your mortgage.
Happy Koodo Public Mobile customer :-)
Jr. Member
Dec 13, 2020
170 posts
178 upvotes
Was tempted to break and get a lower rate, but decided to just make annual prepayments and pay it down.
Newbie
Feb 2, 2017
47 posts
24 upvotes
Manitoba
jacquesstrap wrote: MCAP is offering 1.39% 5yr FIXED rate, but this is on a renewal.
Where is this.posted. i was.only offered 1.54 for renewal up in may
Deal Addict
Dec 16, 2008
1051 posts
464 upvotes
Richmond Hill
jeeva86 wrote: Correct, but why would you break if interest rates are rising ;)
Best case scenario, possibly selling home and buying a different one.
Last edited by kooroshkabir on Mar 6th, 2021 10:24 am, edited 1 time in total.
Member
Jul 1, 2008
343 posts
81 upvotes
Brampton, ON
I am with CIBC 1.72% fixed rate (5 months in) and total Penalty+CashBack : I will end up paying $3500 by switching to 1.30% Variable with TD
Both 5 year closed 30 year amorization

Spoke with about 3 mortgage agent and everyone is still recommeded to stick with Variable.
Any recommendation here?
Member
Sep 29, 2015
472 posts
558 upvotes
Toronto, ON
desaib wrote: I am with CIBC 1.72% fixed rate (5 months in) and total Penalty+CashBack : I will end up paying $3500 by switching to 1.30% Variable with TD
Both 5 year closed 30 year amorization

Spoke with about 3 mortgage agent and everyone is still recommeded to stick with Variable.
Any recommendation here?
What's that penalty based on? I'm surprised it's that low.
Newbie
Sep 5, 2018
95 posts
150 upvotes
willy0275 wrote: Did you calculate how much it would cost to break it versus the savings you'd make? Savings of 1.5%+ a year could be quite a bit depending on your mortgage.
I actually just did some calculations, and was surprised on how close it was. Looks like according to Mcap's own tool, it would cost $8,161 to break my mortgage, and the interest difference between what I would pay between now and maturity on the 1.39% rate mentioned plus this break cost is $260 more. However, tacking on an extra few years with the 1.35% interest rate will more than likely make it well worth it. I might give them a call and see, I'm not entirely sure if my math is right.

Edit: Fixed interest rate.
Member
Jul 1, 2008
343 posts
81 upvotes
Brampton, ON
diggidydave wrote: What's that penalty based on? I'm surprised it's that low.
first 6 months of fixed rate penalty is 3 months of interest and then its IRD
Deal Addict
Aug 5, 2015
3412 posts
3475 upvotes
Montreal, QC
desaib wrote: I am with CIBC 1.72% fixed rate (5 months in) and total Penalty+CashBack : I will end up paying $3500 by switching to 1.30% Variable with TD
Both 5 year closed 30 year amorization

Spoke with about 3 mortgage agent and everyone is still recommeded to stick with Variable.
Any recommendation here?
Lack of information to have a clear idea. How much is the mortgage? That's the most important variable. Let's assume a 200K mortgage. You'd save 0.4% over five years, that would be a ~$4000 savings, minus $3500 for a grand total of $500 savings *but* you'd be betting on rates not going up for five years. So, with a 200k mortgage, I think it would be a very bad move. Now, if your mortgage was 500k, it would probably be a different story.
Happy Koodo Public Mobile customer :-)
Member
Jul 1, 2008
343 posts
81 upvotes
Brampton, ON
willy0275 wrote: Lack of information to have a clear idea. How much is the mortgage? That's the most important variable. Let's assume a 200K mortgage. You'd save 0.4% over five years, that would be a ~$4000 savings, minus $3500 for a grand total of $500 savings *but* you'd be betting on rates not going up for five years. So, with a 200k mortgage, I think it would be a very bad move. Now, if your mortgage was 500k, it would probably be a different story.
Mortgage is close to $900k
Member
Nov 15, 2019
232 posts
300 upvotes
Great rate! Now I just need a $70k/year raise so I can afford to enter the housing market!
Member
Sep 29, 2015
472 posts
558 upvotes
Toronto, ON
desaib wrote: first 6 months of fixed rate penalty is 3 months of interest and then its IRD
Interesting, I have a similar size mortgage with TD @ 1.64% fixed, also started 4 months ago. Problem is TD doesn't do a conventional mortgage, so it's not portable in the same way. I also have a HELOC with them, so not sure if that would complicate things.
Member
Jul 1, 2008
343 posts
81 upvotes
Brampton, ON
diggidydave wrote: Interesting, I have a similar size mortgage with TD @ 1.64% fixed, also started 4 months ago. Problem is TD doesn't do a conventional mortgage, so it's not portable in the same way. I also have a HELOC with them, so not sure if that would complicate things.
Check with CIBC they were offering 1.28% few days back
If mortgage amount is high, bank will most likely take over all the portable cost and some cash back will decrease the penalty amount.
Jr. Member
Oct 25, 2013
120 posts
224 upvotes
I am with Scotia on Variable Flex so currently sitting at 2.03% 5 months in too. Have a meeting with them to lock in a fix rate hopefully able to get 1.7% or 1.8% should i just leave it then even with everyone saying it is going up? 500K
Member
Sep 29, 2015
472 posts
558 upvotes
Toronto, ON
desaib wrote: Check with CIBC they were offering 1.28% few days back
If mortgage amount is high, bank will most likely take over all the portable cost and some cash back will decrease the penalty amount.
Thanks! Yeah if the penalties are as low as yours are (not sure how they work with TD), it would be worth exploring. Interest savings for me would be about 10K over a 5 year term.
Newbie
Mar 4, 2021
4 posts
1 upvote
Hi @[jacquesstrap] - do you have an email or snapshot of the 1.39% offer for renewal?
Deal Addict
Aug 5, 2015
3412 posts
3475 upvotes
Montreal, QC
desaib wrote: Mortgage is close to $900k
Well then you've got your answer Smiling Face With Open Mouth Makes variable way more juicy, if you're OK with the possibility of rates starting to go up in a year or two.
Happy Koodo Public Mobile customer :-)
Sr. Member
User avatar
Jul 21, 2013
878 posts
566 upvotes
Calgary
willy0275 wrote: Well then you've got your answer Smiling Face With Open Mouth Makes variable way more juicy, if you're OK with the possibility of rates starting to go up in a year or two.
Whats stopping you from switching to fixed when that happens?

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