Real Estate

Urgent : Is 2.4% fixed 30 months +1000$ a good rate?

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  • Feb 20th, 2017 11:15 am
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[OP]
Member
Apr 26, 2010
269 posts
33 upvotes

Urgent : Is 2.4% fixed 30 months +1000$ a good rate?

Hey guys!

I'm going to my bank in 2 hours to sign for the mortgage of the home I just bought.
http://www.remax-quebec.com/fr/maison-a ... 566710.rmx

On my condo I had negotiated a variable rate of 2.3% (2.7% preferential - 0.4%).

Now they're offering me 2.4% fixed rate for 30 months and giving me 1000$ with no negotiation.

For all that matters, my credit score is perfect and salary is ­­>100k.

Does that sound like a good rate? Do you think I should try to negotiate and take down maybe .1% or .2%?

Thanks!
6 replies
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
30 months? That is really odd, 2.5y term? Are you porting your current mortgage? In any case :

A - You can get MUCH better rates through a broker

B - Even if you signed with them already, you are NOT locked to them and can still get a mortgage elsewhere
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
[OP]
Member
Apr 26, 2010
269 posts
33 upvotes
valuemortgage wrote: 30 months? That is really odd, 2.5y term? Are you porting your current mortgage? In any case :

A - You can get MUCH better rates through a broker

B - Even if you signed with them already, you are NOT locked to them and can still get a mortgage elsewhere
Hi!

My financing for the house went through this bank but I don't think I've signed anything with them yet.

My current condo mortgage is already with them (variable at 2.4%) and will have to be renewed next month.

However, this mortgage is for a new house I just bought.
Deal Addict
User avatar
Dec 1, 2015
1966 posts
918 upvotes
Etobicoke, ON
Sounds like Desjardins....

So that you know, depending on the numbers you may get a variable rate of 1.85%
Andre Oliveira - Mortgage Agent at Valuemortgage
2018 Top 20 National - Mortgage Intelligence
FSCO # 10428
[OP]
Member
Apr 26, 2010
269 posts
33 upvotes
valuemortgage wrote: Sounds like Desjardins....

So that you know, depending on the numbers you may get a variable rate of 1.85%
You're pretty good.

That is indeed Desjardins.

My rendez-vous is in just a few minutes - with all this info in hand I will try negociating a much better rate or walk away.

Thanks!
[OP]
Member
Apr 26, 2010
269 posts
33 upvotes
Just a quick follow-up:

I was able to get 2.2% variable instead of 2.4% initially offered.

Desjardins also have a dividend which gives back a % of interest paid so it's equivalent to a ~2.1% taking this in consideration.

Thanks a lot!
Member
Nov 1, 2010
397 posts
56 upvotes
Malkavian wrote: Just a quick follow-up:

I was able to get 2.2% variable instead of 2.4% initially offered.

Desjardins also have a dividend which gives back a % of interest paid so it's equivalent to a ~2.1% taking this in consideration.

Thanks a lot!

The dividend you refer to is a "ristourne" which is given back to Desjardins members based on their products (both assets and liability). While it is nice, it should not be taken for granted as there have been cuts to it in the past. I remember one financial adviser saying that it was a guaranteed thing making the actual proposed mortgage rate lower then the proposed rate. The ristourne got reduced dramatically (because of restructuring fees or something) a few months later. Funny thing is the adviser didn't work there anymore. Hope it doesn't change (or even rises, for you!

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