Expired Hot Deals

Tangerine

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

  • Last Updated:
  • Mar 9th, 2021 1:48 pm
Member
Sep 29, 2015
472 posts
558 upvotes
Toronto, ON
Roger21 wrote: Whats stopping you from switching to fixed when that happens?
If and when variable goes up, fixed goes up too.
Deal Addict
Aug 5, 2015
3411 posts
3474 upvotes
Montreal, QC
Roger21 wrote: Whats stopping you from switching to fixed when that happens?
You could, but there's a misconception that you'll magically get the best fixed rates available at no breakup cost. It's false. Your bank will "kindly" offer you to switch to fixed for free but the rates they'll give you will be above what you could get elsewhere or with a new application or renewal. So in theory yes you can switch to fixed at any time but in practice there's a cost to this.
Happy Koodo Public Mobile customer :-)
Member
Jul 1, 2008
343 posts
81 upvotes
Brampton, ON
willy0275 wrote: You could, but there's a misconception that you'll magically get the best fixed rates available at no breakup cost. It's false. Your bank will "kindly" offer you to switch to fixed for free but the rates they'll give you will be above what you could get elsewhere or with a new application or renewal. So in theory yes you can switch to fixed at any time but in practice there's a cost to this.
A friend of mine is with CIBC 2.15% 5 yr variable 30 amortization and suprisely he is able to refinance with CIBC and get 1.5% 5 yr fixed 30 amortization (he applied yesterday, lets see if he gets approved)
Deal Addict
Apr 13, 2007
1361 posts
358 upvotes
Toronto
prakash132 wrote: This was valid till start of this week and for a 90 days lock period. I was not offered this rate for 120 days lock period. Please confirm.
I'm locked in on a 5yr fixed for 2.44% w/ MCAP. Would it be worthwhile to break that mortgage and resign at 1.49% if I get that rate? Amt remaining on my mortage is about 540k
Member
Mar 15, 2012
245 posts
484 upvotes
forevergone wrote: I'm locked in on a 5yr fixed for 2.44% w/ MCAP. Would it be worthwhile to break that mortgage and resign at 1.49% if I get that rate? Amt remaining on my mortage is about 540k
I believe MCAP charges penalty 3% on remaining principal balance(which in ur case is $16,200) , i dont think its worth it. Just call them and check on the same. If the renewal date is nearing 120 days also check with them on the rate they offer.
Deal Addict
Apr 13, 2007
1361 posts
358 upvotes
Toronto
prakash132 wrote: I believe MCAP charges penalty 3% on remaining principal balance(which in ur case is $16,200) , i dont think its worth it. Just call them and check on the same. If the renewal date is nearing 120 days also check with them on the rate they offer.
Thanks, I'll ask them. I just resigned last year so renewal is no where in sight lol.
Jr. Member
Oct 23, 2013
197 posts
297 upvotes
Toronto
willy0275 wrote: You could, but there's a misconception that you'll magically get the best fixed rates available at no breakup cost. It's false. Your bank will "kindly" offer you to switch to fixed for free but the rates they'll give you will be above what you could get elsewhere or with a new application or renewal. So in theory yes you can switch to fixed at any time but in practice there's a cost to this.
Wouldn't you be able to switch to a competitor bank that's offering the better rate then?
Deal Addict
Aug 5, 2015
3411 posts
3474 upvotes
Montreal, QC
unlocknow wrote: Wouldn't you be able to switch to a competitor bank that's offering the better rate then?
Yes (that's what I did with variable MCAP, switching to fixed RBC) but you'll have to pay three months interest + probably new bank's lawyer/notaty/evaluation fees. It's still not much and won't argue with you against variable, they're definitely the most flexible mortgages and 80% of the time the best choice. That's the 20% that hurts Smiling Face With Open Mouth
Happy Koodo Public Mobile customer :-)
Jr. Member
Oct 23, 2013
197 posts
297 upvotes
Toronto
willy0275 wrote: Yes (that's what I did with variable MCAP, switching to fixed RBC) but you'll have to pay three months interest + probably new bank's lawyer/notaty/evaluation fees. It's still not much and won't argue with you against variable, they're definitely the most flexible mortgages and 80% of the time the best choice. That's the 20% that hurts Smiling Face With Open Mouth
Haha, sorry didn't mean to come across as arguing, but that's good to know, I was just curious if there was something we're not aware of if we were to do that as we're currently on variable and planning to do the switch to fixed.
Deal Addict
May 2, 2008
2765 posts
2020 upvotes
Mississauga
Scotia offered 1.15% variable for 5yr and 1.5% @5yr fixed. I think I'll be leaning on the 1.5% fixed given the COVID uncertainty in the coming years due to the covid debt.
Vinh
If you're going to hate, Get off RFD!
Member
May 2, 2020
226 posts
389 upvotes
Toronto
vinnie1990 wrote: Scotia offered 1.15% variable for 5yr and 1.5% @5yr fixed. I think I'll be leaning on the 1.5% fixed given the COVID uncertainty in the coming years due to the covid debt.
Would go with the 1.15% rate and just pay the difference against the principal amount as if you were being hit at a 1.5% rate.

If rates ever go up in 2-3 years then you still come out in the green over a 5 year term and have in return paid more against the principle and less in interest even if the rate goes up.
Blessed are the flexible, for they shall never be bent out of shape
Newbie
Mar 4, 2021
2 posts
What about the HSBC 0.99% variable rate
How does that compare to this. What's the catch?
Jr. Member
Aug 7, 2019
111 posts
72 upvotes
vinnie1990 wrote: Scotia offered 1.15% variable for 5yr and 1.5% @5yr fixed. I think I'll be leaning on the 1.5% fixed given the COVID uncertainty in the coming years due to the covid debt.
Can you share more info on the 1.15% variable. Is that for insured or not? Does the mortgage need to be above a certain amount? Thanks
Sr. Member
Jul 25, 2019
513 posts
212 upvotes
What is the best 5yr fixed rate you guys are seeing right now?
Deal Addict
May 2, 2008
2765 posts
2020 upvotes
Mississauga
Azmosis30 wrote: Would go with the 1.15% rate and just pay the difference against the principal amount as if you were being hit at a 1.5% rate.

If rates ever go up in 2-3 years then you still come out in the green over a 5 year term and have in return paid more against the principle and less in interest even if the rate goes up.
But if it goes up quickly. And you're stuck, it's hard to time the market, but it's just price of mind for 1.5% for a fixed amount.

Even now the banks all went up to 1.75-1.89 for 5yr fixed. Cost extra per month is around 60 bucks a month for me.
RFDLife wrote: Can you share more info on the 1.15% variable. Is that for insured or not? Does the mortgage need to be above a certain amount? Thanks
My mortgage is insured.
Vinh
If you're going to hate, Get off RFD!
Newbie
Jul 19, 2010
73 posts
2 upvotes
One other thing to note is Tangerine products look to be separate between the Mortgage and a HELOC. Big5 banks have the mortgage and HELOC packaged together (aka a readvanceable mortgage) so you don't have to reapply for a HELOC in the future.
Deal Addict
Nov 9, 2008
1850 posts
871 upvotes
Toronto
gleipnir wrote: One other thing to note is Tangerine products look to be separate between the Mortgage and a HELOC. Big5 banks have the mortgage and HELOC packaged together (aka a readvanceable mortgage) so you don't have to reapply for a HELOC in the future.
This is true but typically then the whole product is registered as a collateral, including the mortgage, which puts you at a disadvantage upon renewal as you need to pay to break and move your mortgage to a different institution. Personally, I'll stick with a conventional mortgage and keep my HELOC separate for this reason.
Sr. Member
Jan 19, 2003
893 posts
289 upvotes
I'd suggest anyone looking for a mortgage to use the Mortgage Builder at intellimortgage. It's really transparent and shows you almost every option that brokers have access to.

If you are looking to go variable, the options at HSBC are attractive:

-0.99% available everywhere (for high ratio mortgages)
-1.19% available at select GTA branches (for non high ratio) with up to 3k cashback

hsbc-5yr-variable-0-99-1-29-1-34-starti ... #p34137613
Also it's an open mortgage after 3 years (no penalty to terminate)

A few weeks ago, the spread between fixed and variable was very low, in some cases less than 25 basis points. The case for variable was not that strong, unless you had plans to sell or believed prime would stay low for an extended duration. Now with fixed rates up, there is a case to be made that variable may be the right option. There is no right or wrong answer though, it is highly dependent on everyone's personal situation.
Last edited by vg19 on Mar 6th, 2021 8:09 pm, edited 1 time in total.

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