Feeling good again to be in variable.
TD Bank
TD fixed rate 2.54% mortgage
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- BinaryJay
- Deal Expert
- Oct 19, 2003
- 20241 posts
- 8367 upvotes
- Toronto (Bloor West …
- ElArtist
- Newbie
- May 28, 2017
- 12 posts
- 54 upvotes
I am in process of renewing. Was locked variable at prime -.65, so 1.8% at the moment. Both TD and BMO say that due to the situation and low prime rate, the best variable rate they can offer is prime + 0.3, essentially raising my rate 0.95%... The best fixed 5 year is 2.59... I would love to get prime - 1.00 like lilmikey, or at worst at least kimwoobingsu's 2.3 fixed.
- Krime1k
- Deal Addict
- Mar 12, 2017
- 2061 posts
- 4409 upvotes
If deflation occurs because of this economic mess, we will likely see higher interest rates. That would be my biggest concern with a variable right now.Majokito wrote: ↑ I also have 1.45% variable. I think it's a pretty good rate! I don't see them raising the interest rates for a while with how fragile everything is. Even when they do they'll have to go slow.
In the long run, isn't variable pretty much always the winner over fixed? I mean, at 1.45% the rate would have to go up 1.09% just to be the same as OP. Then go up over another % or more to be a worse deal. All in 5 years. Meanwhile I'm putting more towards my principle so even if it does go up I'll have a lower balance.
- Krime1k
- Deal Addict
- Mar 12, 2017
- 2061 posts
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I’m on year 3 of a 2.35% 5 year fixed and there was no economic monstrosity at the time of sign-up like there is currently. Wouldn’t consider this hot.
- Majokito
- Deal Addict
- Feb 14, 2019
- 1714 posts
- 2238 upvotes
- Toronto
I fully don't expect this situation to last 5 years, at least I hope not. But I do know that by having a variable mortgage right now means I'm saving a lot of money right now. I can't predict what will happen in 2-3 years but I do know what's happening now and the near future. Basing your decision now on what you think will happen in 3-5 years is like trying to time the market, it just can't be done. Not a single person could've predicted what's happening right now. I'm getting a guaranteed savings right now while you are hoping for savings later which may or may not happen. Similar to investing money vs paying down debt. Paying down debt gives a guaranteed return on your money while investing may or may not come out on top.systemdude wrote: ↑ Agreed but you assume the current situation will last year 5 years. I am on the side of if the current situation lasts more then 6 months we are all screwed. The real kicker is if we have a vaccine by next winter. If we do the interest rate will be going up by next year and in 2 years time they will be higher to push back against the inflation. So true that you would have put more towards your principal in the 2 years vs me but I will get to stick with a lower rate in year 3. That's what I am basing this on right now.
Once things settle down, the Bank of Canada will definitely want to start raising rates, but only if the economy is stable which is going to take some time. Even once they start raising rates, they'll have to be extremely cautious as people already had record levels of debt prior to COVID and are most certainly in a worse place now. Even going up 25 points could have a huge effect on people and businesses who have had to dip into lines of credit just to get through the last few months.
With that being said, I don't think 2.54% is a terrible rate, but definitely not near the best. With TD for example, if you have variable and have a mortgage payment of $1000, if rates go up you still pay $1000, just less goes to principle so your amortization period extends so it doesn't affect your cash flow if that's a concern.
- stevensingh21
- Sr. Member
- Sep 13, 2007
- 545 posts
- 109 upvotes
- Toronto
signed up for 2.84% with them in january.
I thought it was a great rate, since i was at 3.45% with Scotia.
I thought it was a great rate, since i was at 3.45% with Scotia.
- Scote64
- Deal Fanatic
- Jan 21, 2018
- 9652 posts
- 10924 upvotes
- Vancouver
Please put "mortgage" in the thread title. Just saying "fixed rate" is misleading to a lot of people - you could easily be referring to a GIC, which is a completely different interest group.systemdude wrote: ↑ Hi guys, I didn't see anyone post this but I was recently able to get 2.54 percent rate for 5 year fixed term with 20 percent down payment on buying a new home. I was previously offered 2.75 and noticed that the rates for fixed term have finally dipped this week. There is no cashback just straight down . RBC is currently at 2.69 for same situation.
- Majokito
- Deal Addict
- Feb 14, 2019
- 1714 posts
- 2238 upvotes
- Toronto
Rates WILL go up, they're essentially at the bottom now as BoC said 0.25 was their "floor" (I don't think we'll see negative rates here). But, with how big of an impact this has had on the population, debt levels are definitely going up right now as people struggle to pay bills, buy groceries, deal with job layoffs or loss. People and businesses are dipping into lines of credit and loans just to stay afloat. They were cautious raising rates a couple years ago, they'll have to be even more cautious this time. People will need a long time to recover from this just to pay back what they had to borrow over these months. During this time, people will have to cut back on spending while they pay back debt, which also keeps rates low. Raising rates too quickly will have a massive negative effect on households and businesses since people won't be able to keep up with payments, and won't be able to spend money to help the economy.
- typhooney
- Sr. Member
- Mar 18, 2008
- 636 posts
- 809 upvotes
- Toronto
No point arguing if variable or fixed is better, it depends on your risk appetite.
We could look at historical numbers, which say that variable is better but past performance is not a indicator of future performances, especially during these times. So that’s moot.
We could look at historical numbers, which say that variable is better but past performance is not a indicator of future performances, especially during these times. So that’s moot.
- XxXSnake23XxX
- Deal Guru
- Apr 23, 2007
- 10206 posts
- 1465 upvotes
- Mississauga
Really? How much down did u put on the property?kimwoobingsu wrote: ↑ Could be way better for a new mortgage.
I’m getting 2.4% this week at TD, a friend is getting 2.3% at BMO.
Edited because Fixed
I signed before all this craziness happened for 2.59 % for 5.
Wanna see if my broker should go back to TD and get a similar rate.... i only put 20% down though.
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- mrblack747
- Sr. Member
- May 14, 2008
- 976 posts
- 621 upvotes
- Toronto
mortgage 2.54% not bad.....
- systemdude [OP]
- Member
- Dec 26, 2015
- 480 posts
- 398 upvotes
- Ottawa, ON
- systemdude [OP]
- Member
- Dec 26, 2015
- 480 posts
- 398 upvotes
- Ottawa, ON
I was at 2.59 2.54 just happened this week so you should see that as well. My broker is saying since I have about 3 weeks left to close it will dip down again.XxXSnake23XxX wrote: ↑ Really? How much down did u put on the property?
I signed before all this craziness happened for 2.59 % for 5.
Wanna see if my broker should go back to TD and get a similar rate.... i only put 20% down though.
- akz
- Deal Fanatic
- Sep 13, 2004
- 5148 posts
- 1070 upvotes
new purchase renewal because I had to do a title change. Forgot to mention it was a HELOC as well.systemdude wrote: ↑ New purchase or Renewal
Last edited by akz on Apr 29th, 2020 11:12 am, edited 1 time in total.
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- xbournex
- Member
- Mar 28, 2010
- 309 posts
- 527 upvotes
- vancouver
Nobody calls it a fixed rate with GIC. It isn't misleading, you misunderstood. With GIC, the term is "guaranteed rate", which so happens to be what the G stands for.
- eqtrend
- Newbie
- Oct 19, 2016
- 67 posts
- 16 upvotes
Majokito wrote: ↑ I also have 1.45% variable. I think it's a pretty good rate! I don't see them raising the interest rates for a while with how fragile everything is. Even when they do they'll have to go slow.
In the long run, isn't variable pretty much always the winner over fixed? I mean, at 1.45% the rate would have to go up 1.09% just to be the same as OP. Then go up over another % or more to be a worse deal. All in 5 years. Meanwhile I'm putting more towards my principle so even if it does go up I'll have a lower balance.
how do you get variable mortgage rate of 1.45?
At mom i am with TD 3yr vari rate (TD prime rate less certain disc) works out to approx 1.8ish
- brutal
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- xbournex
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- Majokito
- Deal Addict
- Feb 14, 2019
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- eqtrend
- Newbie
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