Fixed mortgage rates drop - From 1.78%

I got 1.64 4 year fixed this February with 2000$ cash back.

Interesting.

soupmaster666 wrote: ↑ I don't understand why a bank would penalize for moving from Variable to Fixed. The interest rate literally goes up a good jump, so they instantly start making more money. Plus the IRD scam in Canada means breaking a Fixed mortgage without using Martin's Mortgage Manoeuver can cost tens of thousands of dollars.

Exactly, my td agent said no cost to switch. However that rate is not for me.

I'm on variable at td at 1.28%, they offered 1.94% fixed for 5 years if I move to fixed.

Xtrema wrote: ↑ Not saying that's not a good deal historically. But on $300K and 25 yr, you are giving up about $80/mth in interest for the 5yr term for "peace of mind" by picking 1.89% over 1.55%.

The peace of mind is basically you are betting the Feds WILL raise prime more than .75% in that 5 years.

Just to show that there's a price tag attached to your "peace of mind". But I understand, everyone's risk tolerance is different.

Of course they will, we’ll be lucky if it’s only .75 in 5 years.

ysl5710 wrote: ↑ I got 1.64 4 year fixed this February with 2000$ cash back.

Interesting.

where? can you please let me know?

b31770 wrote: ↑ My mortgage is not recent, so my variable rate is higher. I'm doing the math to see if it makes sense to lock in a lower fixed rate.

I read my contract, and have calculated the penalty to break it. But again, my question is what are the options if I wanted to STAY with TD and possibly convert my variable to a fixed. I truly don't know, so that is why I am asking.

Theoretically, the cost would be lower, and they would retain a mortgage, right?

In my experience, TD offers no incentive to stay. They charge the full penalty. I had about a year left on my mortgage when we purchased a new home, wanted to take a full 5 years fixed (2.79% was a great rate in 2014 and we kept being told it would never go lower lol). TD said sure, but you need to pay a penalty of several thousand dollars to break your mortgage, which was based on the rate differential.

Ended up porting the mortgage until renewal and have been a happy customer of a credit union ever since.

I would recommend talking to a broker. Many will give you cash back to cover a portion of the penalty.

I work at TD. You can switch from variable to 3yr fixed or fixed term thats greater than term remaining, no penalty.
Just speak to advisor on telephone at branch and they will advise of your specific situation.

ie. you did 5 yr variable, have 1yr left. You can switch to 3yr or 1yr fixed term, no penalty
ie. you did 5yr variable, have 3 yr left. You can switch to 3yr or 4 yr, 5yr fixed term, no penalty

bbt230 wrote: ↑ For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?

Was it through broker and is it high ratio?

bbt230 wrote: ↑ For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?

777canadian wrote: ↑ Was it through broker and is it high ratio?

Curious as well - was this a CMHC insured mortgage? 1.18% seems really low especially for 30 year amortization. And $2500 cash back on top - this might be the RFD record in terms of mortgages...

Please share details and contact! Thanks

Non CMHC insured,and non high ratio. I went though a TD mobile mortgage specialist for the deal.

donuts4fun wrote: ↑ I work at TD. You can switch from variable to 3yr fixed or fixed term thats greater than term remaining, no penalty.
Just speak to advisor on telephone at branch and they will advise of your specific situation.

ie. you did 5 yr variable, have 1yr left. You can switch to 3yr or 1yr fixed term, no penalty
ie. you did 5yr variable, have 3 yr left. You can switch to 3yr or 4 yr, 5yr fixed term, no penalty

What if you did 5 year fixed, have 3 yr left?

djredhat wrote: ↑ Inflation’s through the roof, but we keep pumping cash and lowering the interest rates.

Makes perfect sense…

Someone is profiting from the low rates. Economics 101 does not apply.

Xtrema wrote: ↑ Read you contract on penalty. There is no way TD won't charge you to switch.

Variable at 1.55 and fixed at 1.89. Why would you want to switch to fixed? Are you that bullish that Canadian economy is going to boom? Or you are worried about hyperinflation due to our debt created by Feds?

In case you didn’t hear the announcement last week, bank of Canada will start raising rates before they taper off the bond purchasing program, which will likely start in mid 2022. If you factor in a modest 25bps increase the variable rate goes to 1.80%. I think is prudent for just 9bps to get fixed for a 5 year term, especially if you think inflation will persist.

bbt230 wrote: ↑ Non CMHC insured,and non high ratio. I went though a TD mobile mortgage specialist for the deal.

If in GTA then i need contact info
Please pm

bbt230 wrote: ↑ For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?

The BoC overnight rate is 0.25%. I don't think you want rate to drop anymore because this will likely mean the economy is in very bad shape and potentially lots of layoffs and unemployment.

Are you sure even if the fixed rates are substantially lower than variable?

Why will TD do such change without any charge as they will loose money

donuts4fun wrote: ↑ I work at TD. You can switch from variable to 3yr fixed or fixed term thats greater than term remaining, no penalty.
Just speak to advisor on telephone at branch and they will advise of your specific situation.

ie. you did 5 yr variable, have 1yr left. You can switch to 3yr or 1yr fixed term, no penalty
ie. you did 5yr variable, have 3 yr left. You can switch to 3yr or 4 yr, 5yr fixed term, no penalty

Those are very good rates, I got my mortgage done last month. TD offered me a garbage 2.16% on a fixed 5 years and wouldn't budge. Just my experience from the beddington branch of TD.

Went with MCAP for 5 year Fixed @ 1.39% but that was in April of this year.

TD couldn't come anywhere near close to this when we approached them (long time customer). This was our experience with our last mortgage as well, wouldn't budge or negotiate at all.

1.89% fixed is a great rate and with one of the big banks, so nothing to shake a stick at.

I just renewed a 5-year with TD in June last year. Any way to possibly re-negotiate to these rates? I'm at 2.53%

bbt230 wrote: ↑ For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?

Wow that's not bad... I've been quoted 1.25% 5 year variable, 30 years. Is this location based? And does everyone get this cash back?